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R12 Oracle General Ledger

Management Fundamentals
Volume 1 - Student Guide

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Copyright © 2007, Oracle. All rights reserved.

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be trademarks of their respective owners.

Author

Brent Bosin, Marilyn Crawford

Technical Contributors and Reviewers

Theresa Hickman, Mei Siauw, Cynthia Prier, Ivy Farren, Joe Gum, Kathy Wohnoutka, Pam
Rietz, Suzanne Miller

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Table of Contents

Oracle General Ledger Process ......................................................................................................................1-1


Oracle General Ledger Process .....................................................................................................................1-3
Objectives ......................................................................................................................................................1-4
Oracle General Ledger Overview ..................................................................................................................1-5
General Ledger Overview..............................................................................................................................1-6
Functions and Features ..................................................................................................................................1-7
General Ledger Accounting Cycle ................................................................................................................1-8
Critical Implementation Issues ......................................................................................................................1-9
Oracle General Ledger Integrates with … .....................................................................................................1-10
Also Integrates with …..................................................................................................................................1-13
Integrating with Subledgers...........................................................................................................................1-15
Importing to General Ledger from Non-Oracle Applications........................................................................1-16
Overview of Accounting Setup Manager ......................................................................................................1-17
Foreign Currency Concepts ...........................................................................................................................1-18
Multiple Currency Support ............................................................................................................................1-19
Budgeting ......................................................................................................................................................1-21
Overview of Enterprise Planning and Budgeting (EPB) ...............................................................................1-22
Reporting and Analysis .................................................................................................................................1-23
Standard Reports and Listings .......................................................................................................................1-25
Financial Statement Generator Reports (FSG) ..............................................................................................1-26
Summary........................................................................................................................................................1-27
Accounting Setup Manager ............................................................................................................................2-1
Accounting Setup Manager ...........................................................................................................................2-3

m y
2-1
......2-3
.....2-3

e
.............2-4
............2-4
Objectives ......................................................................................................................................................2-4
...................2-5
..................2-5
Accounting Setups.........................................................................................................................................2-5

a d
...........................2-7
......................2-7
Ledger Processing Options ............................................................................................................................2-7
...............................
....... ........................
Secondary Ledgers ........................................................................................................................................2-9

A c
.............
..............................
..................
Reporting Currencies.....................................................................................................................................2-11
...........................
Accounting Setup Considerations..................................................................................................................2-13
................................
...............................
Accounting Setups with One Legal Entity ....................................................................................................2-14

c l e ..............................
Accounting Setups with Multiple Legal Entities ...........................................................................................2-16
.............................
............................
Accounting Setups with No Legal Entities....................................................................................................2-17

r a ...............................
Designing the Chart of Accounts...................................................................................................................2-18
................................
...............................
Summary........................................................................................................................................................2-19

O ly ................................
...............................
Ledger...............................................................................................................................................................3-1
...............................
................
...............
..........................
Ledger............................................................................................................................................................3-3

l & On ................................
...............................
...............................
................................
...............................
Objectives ......................................................................................................................................................3-4
...............................
Ledgers Defined ............................................................................................................................................3-6

n a e view........................
...............................
................................
...............................
Accounting Setup Manager Overview...........................................................................................................3-7
...............................
Secondary Ledgers ........................................................................................................................................3-9
Secondary Ledger Conversion

t e r U s
rsion Levels ........... ...............................
..............................
...........................................................................................................3-10
.............................. ............................
...........................
Reporting Currencies.....................................................................................................................................3-12

n
Reporting Currency ncy (RC) Conversio
Conversi els................
Conversion Levels................................................................................................3-13
Accounting Setup
I
tup Steps.............
Steps.................................................................................................................................3-14
ing Setup Manager Create Accounting Setup ..................................................................................3-16
Accounting

e
.........

ounting Calenda
Accounting

c l
Calendar ....
Unlimited Currencie
Cu rrencie
.....................................................................................................................................3-18
Currencies.....................................................................................................................................3-19

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Sharing Ledge
Ledgers Across Oracle Applications ................................................................................................3-20
Chart of Ac
Accounts..........................................................................................................................................3-21

O
Building the Chart of Accounts Structure......................................................................................................3-22
Iden
Identifying Business Requirements ...............................................................................................................3-23

Copyright © Oracle Corporation, 2007. All rights reserved.

R12 Oracle General Ledger Management Fundamentals Table of Contents


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Identifying Segment Requirements ...............................................................................................................3-24
Analyzing Reporting Requirements...............................................................................................................3-26
Creating a Worldwide Chart of Accounts......................................................................................................3-27
Worldwide Chart of Accounts Example........................................................................................................3-28
Creating Vertical Structures ..........................................................................................................................3-29
Validation and Value Sets .............................................................................................................................3-30
Using Independent and Dependent Segments................................................................................................3-31
Designing Size and Numbering Systems.......................................................................................................3-33
Creating Accounting Flexfields.....................................................................................................................3-35
Defining Value Sets.......................................................................................................................................3-36
Defining the Accounting Flexfield Structure.................................................................................................3-38
Defining Segment Values ..............................................................................................................................3-41
Populating Segment Value Attributes............................................................................................................3-42
Segment Qualifiers ........................................................................................................................................3-43
Control Accounts...........................................................................................................................................3-45
Control Accounts Setup and Process .............................................................................................................3-46
Defining Hierarchies......................................................................................................................................3-47
Working with Ranges ....................................................................................................................................3-49
Account Hierarchies ......................................................................................................................................3-50
Account Hierarchy Manager..........................................................................................................................3-51
Account Hierarchy Manager—Security ........................................................................................................3-52
Defining an Accounting Calendar .................................................................................................................3-54
Defining Period Types...................................................................................................................................3-56
Defining Your First Accounting Period.........................................................................................................3-57
Accounting Period Statuses ...........................................................................................................................3-58
Calendar Auditing..........................................................................................................................................3-600
Enabling Currencies ......................................................................................................................................3-61
Enabling Account Combinations...................................................................................................................3-62
m y
3-61
.......3-62
......3-62

e
.............3-63
Segment Value Inheritance............................................................................................................................3-63

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Troubleshooting Segment Value Inheritance.................................................................................................3-65.........
...................3-65
...........3-65
..........................3-6
....... ...................3-6
Defining Flexfield Security Rules .................................................................................................................3-67
..........

c a
.............................
....................
Using Dynamic Insertion...............................................................................................................................3-69
..............................
.................... ..........
Defining Cross-Validation Rules...................................................................................................................3-70

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........................
.............................
Defining Shorthand Aliases...........................................................................................................................3-72
................................
...............................
......
Overview of Account Hierarchy Manager.....................................................................................................3-74

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...............................
Integrating with Oracle General Ledger ........................................................................................................3-76
................................
...............................
Using the Account Hierarchy Toolbar...........................................................................................................3-77

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Account Hierarchy Manager Segment Symbols............................................................................................3-78
................................
...............................
...
Parent Levels in an Account Hierarchy .........................................................................................................3-80

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........................................
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Creating New Child Values ...........................................................................................................................3-81
..................................................
Ledger Sets ....................................................................................................................................................3-82

l & On ...........................................................
................................
...............................
............................
Data Access Sets............................................................................................................................................3-83
................................
...............................
Summary........................................................................................................................................................3-84

n a e...............................
..............................
..............................
...............................
..............................
Basic Journal Entries ......................................................................................................................................4-1
...........................................................
.............................
Basic Journal Entries .....................................................................................................................................4-3

Journal Entries and the


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hee Accounting
U s
................................
...............................
................................
...............................
Objectives ......................................................................................................................................................4-4
Accounting Cycle.....................................................................................................4-7
Cycl .........................

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Integrating Journalnal Entries
Entries in Oracle eBusiness ness ...........
............................................................................................4-8
Performing Journal Entry Funct
Journal Entr I
Entryy Types............
Fu ........
Functions..............................................................................................................4-9
Types.......................................................................................................................................4-10

e
nal Creation
Journal
Journal Co
c l
Creation Metho
ournal Components
Component
Methods..............................................................................................................................4-11
mponent ......................................................................................................................................4-13

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Grouping Journ
Manual JJou
Journals into Batches.....................................................................................................................4-15
Journal Entries..................................................................................................................................4-17

O
Perform
Performing Additional Journal Actions.........................................................................................................4-19
Pos
Posting Journals.............................................................................................................................................4-20

Copyright © Oracle Corporation, 2007. All rights reserved.

R12 Oracle General Ledger Management Fundamentals Table of Contents


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Data Access Set Impact to Posting ................................................................................................................4-23
Posting to a Prior Period................................................................................................................................4-24
Overview of AutoPost ...................................................................................................................................4-26
Defining AutoPost Criteria Sets ....................................................................................................................4-27
Running AutoPost..........................................................................................................................................4-29
Performing Online Inquiries for Accounts and Journal Entries.....................................................................4-30
Performing Account Inquiry..........................................................................................................................4-31
Reviewing Balances with Account Inquiry ...................................................................................................4-33
Reviewing Variances Between Account Balance Types ...............................................................................4-34
Drilling Down to Subledger Details ..............................................................................................................4-35
T Accounts and Drilldown.............................................................................................................................4-37
Display Options Available While Viewing ...................................................................................................4-39
T Accounts.....................................................................................................................................................4-40
Activity Summary..........................................................................................................................................4-42
Reversing Journal Entries ..............................................................................................................................4-43
Creating Reversing Journals ..........................................................................................................................4-45
Reversing Journals Automatically .................................................................................................................4-46
Journal Reversal Prerequisites.......................................................................................................................4-47
Running Journal Entries Report.....................................................................................................................4-48
Integrating with Oracle General Ledger ........................................................................................................4-49
Web Applications Desktop Integrator Overview...........................................................................................4-50
Web ADI Core Functionality.........................................................................................................................4-52
Desktop Integration Via Web ADI ................................................................................................................4-54
Administering Web ADI ...............................................................................................................................4-56
Creating Web ADI Spreadsheets ...................................................................................................................4-57
Working With Web ADI Spreadsheets..........................................................................................................4-588
Defining Web ADI Layouts...........................................................................................................................4-59
Defining Web ADI Mappings .......................................................................................................................4-60
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4-59
.......4-60
......4-60

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Defining Web ADI Style Sheets....................................................................................................................4-61.............4-61

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Defining Web ADI Setup Options for Key Flexfields...................................................................................4-62 ................
....................4-62
.....4-62
Uploading and Downloading Data from Web ADI Spreadsheets .................................................................4-63 ............................4-6
...........................4-6

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..............................
Identifying Web ADI Profile Options ...........................................................................................................4-65............
..............................
Identifying Form Functions, Menus, and Responsibilities in Web ADI........................................................4-66

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...............................
Overview of Importing Journal Entries .........................................................................................................4-67
..............................
Importing Descriptive Flexfields ...................................................................................................................4-69

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..............................
Importing Journals.........................................................................................................................................4-70
................................
...............................
Multi-Table Journal Import ...........................................................................................................................4-72

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Journal Import Group By Effective Dates Description..................................................................................4-74
..............................
Journal Import Group By Effective Dates Benefits .......................................................................................4-75

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How to Set Up Journal Import Group By Effective Dates tes ..................... ..........
.........
............................................................................4-76
s..............................
......................
.....................
Using Journal Import Group By Effective Dates...........................................................................................4-77

l & On ...........................................................
................................
...............................
............................
Importing Journal References........................................................................................................................4-78
................................
...............................
Reviewing Journal Import Data.....................................................................................................................4-80

a e
Journal Import Verification Processs ............................ .............................
............................
..............................................................................................................4-81

n
Using Journal Entry Sources and ndd Ca
Categories..........
tegories.......... ................................
...............................
Categories.................................................................................................4-83

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...............................
Setting Profile Options ..................................................................................................................................4-85

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...............................
...............................
Summary........................................................................................................................................................4-86

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...............................
..............................

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Using Accounting g Setup Manager.... ..................
Manager..................................................................................................................5-1
unting Setup Manag
Using Accounting
I Manager.................................................................................................................5-3
ves ...........................
Objectives

e
........
......................................................................................................................................................5-4

c l
ating Accoun
Creating Accounting
Accounting Setup P
ting SeSetups ..........................................................................................................................5-6
Prerequisites.....................................................................................................................5-7

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Create Acco
Account
Accounting Setup Demonstration ......................................................................................................5-8
Legal Entiti
Entities Pages.......................................................................................................................................5-9

O
Accoun
Accounting Setups Pages...............................................................................................................................5-10
Acc
Accounting Setup Manager Checklist ...........................................................................................................5-11

Copyright © Oracle Corporation, 2007. All rights reserved.

R12 Oracle General Ledger Management Fundamentals Table of Contents


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Accounting Setup Manager Checklist (continued) ........................................................................................5-12
Legal Entities Overview ................................................................................................................................5-13
Balancing Segment Value Assignments ........................................................................................................5-14
Using Balancing Segment Values for Transaction Processing ......................................................................5-15
Completing Accounting Setups .....................................................................................................................5-16
Designating the Balancing Segment for a Chart of Accounts .......................................................................5-17
Defining Legal Entities Using Accounting Setup Manager...........................................................................5-18
Updating Balancing Segment Values ............................................................................................................5-20
Creating Accounting Setup Structures...........................................................................................................5-22
Creating Accounting Setup Structures (continued) .......................................................................................5-23
Creating an Accounting Setup .......................................................................................................................5-25
Completing Accounting Options ...................................................................................................................5-27
Updating Legal Entities .................................................................................................................................5-28
Primary Ledger Setup Steps ..........................................................................................................................5-30
Ledger Options ..............................................................................................................................................5-31
Reporting Currencies.....................................................................................................................................5-32
Ledger Balancing Segment Value Assignments............................................................................................5-33
Subledger Accounting Options......................................................................................................................5-35
Operating Units .............................................................................................................................................5-36
Intracompany Balancing Rules......................................................................................................................5-38
Sequencing ....................................................................................................................................................5-39
Secondary Ledgers ........................................................................................................................................5-40
Using Secondary Ledgers for Consolidated Reporting..................................................................................5-50
Using Ledgers for Consolidation...................................................................................................................5-54
Completing Accounting Setup.......................................................................................................................5-56
Adding, Deleting, Disabling Secondary Ledgers ..........................................................................................5-588
Summary Accounts..........................................................................................................................................6-1
y
....6-1
...6-1

m
..........6-3
Summary Accounts........................................................................................................................................6-3

d e.................6-4
................6-4
Objectives ......................................................................................................................................................6-4
.......................6-5
Overview .......................................................................................................................................................6-5

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............
.............................6
..................6
Defining Summary Accounts ........................................................................................................................6-7
...............................
.................... ...........
Summary Account Examples ........................................................................................................................6-8

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............................
...........................
Detail Versus Summary Accounts.................................................................................................................6-10
...............................
Summary Accounts Versus Parent Values ....................................................................................................6-11

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...............................
Parent Values and Rollup Groups..................................................................................................................6-12
..............................
Rollup Groups ...............................................................................................................................................6-13
..............................
.............................
Summary Account Templates........................................................................................................................6-14

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Template Values ............................................................................................................................................6-15
..............................
...................................
Defining Summary Accounts ........................................................................................................................6-16

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...............................
...............................
..............................
.................
Summary Account Creation Example ...........................................................................................................6-17
.........................
........................
Maintain Summary Accounts Overview........................................................................................................6-18

l & On ................................
...............................
..............................
..............................
................................
...............................
Maintaining Summary Templates..................................................................................................................6-19
...............................
..............................
Setting Budgetary Control .............................................................................................................................6-21
Incremental Add/Delete Summary

n a e
ry Templates
Templates Progra
Planning Summary Accounts .............................
Programram .........................
................................................................................6-24
..............................
.............................
........................................................................................................................6-26
Determine Summary Account
Plan Summary Account ount
count

t r U s
ount Needs ...........

e
unt Structure .........
..............................
............................................................................................................6-27
...........................
..........................
.................................................................................................................6-29

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Plan Values and Groups .................. ..................
................................................................................................................................6-35
Plan Summary

e
ary Account
I
Account Templa Temp
ry.............................
y.............................
........
Templates................................................................................................................6-37
Summary........................................................................................................................................................6-38

c l
anced Jour
Advanced Journal
Advanced Journal
nal En
nal Ent
Entries ..............................................................................................................................7-1
Jourr Entries ..............................................................................................................................7-3
Journa

r a
Objectives ......................................................................................................................................................7-4
About Re
....
Recurring Journals ..............................................................................................................................7-5

O Recu
Recurring Journal Types................................................................................................................................7-6
C
Creating Recurring Journals ..........................................................................................................................7-7

Copyright © Oracle Corporation, 2007. All rights reserved.

R12 Oracle General Ledger Management Fundamentals Table of Contents


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Recurring Journal Entry Lines.......................................................................................................................7-9
Automatic Offset Example ............................................................................................................................7-10
Formula Recurring Journals ..........................................................................................................................7-11
Generating Recurring Journals ......................................................................................................................7-12
MassAllocations Overview............................................................................................................................7-13
MassAllocations versus Recurring Journals ..................................................................................................7-14
Steps to Create MassAllocation Journals.......................................................................................................7-15
Defining MassAllocation Journals ................................................................................................................7-16
Defining MassAllocation Formulas...............................................................................................................7-18
Account Segment Types................................................................................................................................7-20
Target and Offset Accounts ...........................................................................................................................7-21
MassAllocation Journal Example ..................................................................................................................7-22
Rent Expense Example ..................................................................................................................................7-24
Validating MassAllocation Journals..............................................................................................................7-25
Generating Mass Allocation Journals ............................................................................................................7-26
AutoAllocations Overview ............................................................................................................................7-27
AutoAllocation Workbench...........................................................................................................................7-28
Business Benefits of AutoAllocation Workbench .........................................................................................7-29
AutoAllocation Set Types..............................................................................................................................7-30
Step-Down AutoAllocations..........................................................................................................................7-31
Parallel AutoAllocations................................................................................................................................7-32
Additional Workbench Functionality ............................................................................................................7-33
AutoAllocation Sets and Oracle Workflow ...................................................................................................7-34
AutoAllocations and Oracle Workflow .........................................................................................................7-35
AutoAllocations Constraints..........................................................................................................................7-36
Submitting AutoAllocation Set Requests ......................................................................................................7-377
Reviewing the Status of AutoAllocations......................................................................................................7-38
Implementation Considerations for AutoAllocation Workbench ..................................................................7-39
m y
7-38
.......7-3
......7-399

e
.............7-40
AutoScheduling Overview.............................................................................................................................7-40

d
....................7-41
...................7-41
AutoScheduling Process ................................................................................................................................7-41
..........................7-4
Financial Schedules .......................................................................................................................................7-42
......

c a
.............................
........................
Scheduling Journals.......................................................................................................................................7-44
..............................
Scheduling a Request Using a Financial Schedule ........................................................................................7-45

e A
....................
.............................
..........
Periodic Submissions.....................................................................................................................................7-46
.............................
Incremental Submissions ...............................................................................................................................7-47

c l ................................
...............................
Implementation Considerations for Journal Entry Automations ...................................................................7-48
................................
...............................
GL Journal Approval Process Overview .......................................................................................................7-49

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............................
Journal Approval Features.............................................................................................................................7-50
..............................
Journal Approval Process ..............................................................................................................................7-51

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........................................
.........
Approval Methods .........................................................................................................................................7-56
................................
...............................
......................
.....................
Journal Approval Prerequisites......................................................................................................................7-57

l & On ...............................
................................
...............................
..............................
Setting Up Journal Approval .........................................................................................................................7-58
................................
...............................
Summary........................................................................................................................................................7-60

n a e
................................
...............................
...............................
................................
...............................
Advanced Security...........................................................................................................................................8-1
...............................
Advanced Security.........................................................................................................................................8-3

Data Access Security


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...............................
y for Legal Entities and
................................
...............................
Objectives ......................................................................................................................................................8-4
nd Ledgers.........
Ledgers....................................................................................8-5

n
Setup and Process sss ............................ ..................
..........................................................................................................................................8-12

ccess
Data Access

e
cess Security for Le I
Data Accesss Security for Legal Entities and Ledge Ledgers Setup and Process......................................................8-13
Legal Entities and Ledgers Setup - Define Data Access Set.................................8-14

c l
nagement Reporting
Management Repor
Management Reporting
Repor
and Security ............................................................................................................8-15
and Security Setup ..................................................................................................8-19

r a
Summary.........
Summary........................................................................................................................................................8-20
Financial B
Budgeting.........................................................................................................................................9-1

O Finan
Financial Budgeting.......................................................................................................................................9-3
O
Objectives ......................................................................................................................................................9-4

Copyright © Oracle Corporation, 2007. All rights reserved.

R12 Oracle General Ledger Management Fundamentals Table of Contents


v
What Is a Budget?..........................................................................................................................................9-6
What Is an Oracle Budget? ............................................................................................................................9-7
Available Budget Methods ............................................................................................................................9-8
Anatomy of a Budget—Overview .................................................................................................................9-9
Budget Accounting Cycle..............................................................................................................................9-10
Creating a Budget ..........................................................................................................................................9-12
Budget Definition Steps.................................................................................................................................9-13
Budget Hierarchies ........................................................................................................................................9-14
Define a Budget .............................................................................................................................................9-15
Open Budget Year .........................................................................................................................................9-16
Master-Detail Budgets...................................................................................................................................9-17
Budgets Using FSG Reports..........................................................................................................................9-18
Multiple Versions of a Budget.......................................................................................................................9-19
Define Budget Organizations ........................................................................................................................9-20
Features of Budget Organizations .................................................................................................................9-21
Budget Organization Window .......................................................................................................................9-22
AutoCopy Budget Organizations...................................................................................................................9-23
Assign Account Ranges.................................................................................................................................9-24
Add/Change Account Ranges........................................................................................................................9-25
Removing Account Ranges ...........................................................................................................................9-26
Delete a Budget Organization........................................................................................................................9-27
Budget Entry Methods...................................................................................................................................9-28
Journals Created?...........................................................................................................................................9-30
Budget Entry Modes......................................................................................................................................9-31
Entering Budget Amounts .............................................................................................................................9-32
Budget Rules .................................................................................................................................................9-333
Budget Rules and Your Calendar ..................................................................................................................9-34
y
9-34
.......9-35
......9-35
Budget Journals Process ................................................................................................................................9-35
m
e
.............9-36
Entering Budget Journals...............................................................................................................................9-36

d
....................9-37
...................9-37
Budget Journal Features ................................................................................................................................9-37
..................
...........................9-3
Calculating and Translating Budget Amounts...............................................................................................9-38 ..........9-3
..............

c a
..............................
.................
Budget Translation Overview........................................................................................................................9-39
..............................
.................. ............
Transfer Budget Overview ............................................................................................................................9-40

e A
......................
.............................
........
Transfer Budget Process ................................................................................................................................9-41
................................
...............................
Transfer Budget Amounts Example ..............................................................................................................9-42

c l ................................
...............................
Transfer Budget Percentage Example............................................................................................................9-43
................................
...............................
Transfer with Budgetary Control...................................................................................................................9-44

r a ................................
...............................
Finalize Budgets ............................................................................................................................................9-46
................................
...............................
...
Correcting Budgets ........................................................................................................................................9-47

O ly
........................................
..........
Budget Journal Entries?.................................................................................................................................9-48
...............................
..................................................
No Budget Journal Entries? ...........................................................................................................................9-49

l & On ...............................
...............................
..............................
Freeze Budgets ..............................................................................................................................................9-50
............................................................
Budget Inquiry Overview ..............................................................................................................................9-51

a e
...............................
...............................
Performing Account Inquiry..........................................................................................................................9-52

n
Reviewing Variances Between Account Balance Balance Types T .....................
...............................................................................9-53

Query Detail Budgetsgets and


t e r U s
...............................
Budget Inquiry Window ................................................................................................................................9-54
Drilldown This Budgett ..............................
and Violations Only
...............................
...............................
..............................
..................................................................................................................................9-55
O y .....................
...................................................................................................9-56

I n
Two Wizards - Overview .............
..............................................................................................................................9-57
izard:: Overview .............................................................................................................................9-58
Budget Wizard: .....
.............

c l
Budget
e
ett Wizard Key Be Bene
Benefits .........................................................................................................................9-59
ummary...................
Summary........................................................................................................................................................9-60

a
Multi-Currency.
Multi-Curren
Multi-Currency................................................................................................................................................10-1

r
Multi-Curr
Multi-Currency ..............................................................................................................................................10-3

O
Objecti
Objectives ......................................................................................................................................................10-4
Ov
Overview of Multi-Currency .........................................................................................................................10-5

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Foreign Currency Concepts ...........................................................................................................................10-6
Integrating with Subledgers...........................................................................................................................10-7
Reporting Currencies.....................................................................................................................................10-8
Defining Currencies.......................................................................................................................................10-10
Conversion Overview ....................................................................................................................................10-12
Conversion Example......................................................................................................................................10-13
Defining Conversion Rate Types...................................................................................................................10-14
Entering Daily Rates......................................................................................................................................10-16
Revaluation Overview ...................................................................................................................................10-17
Revaluation Process.......................................................................................................................................10-18
Running Revaluation .....................................................................................................................................10-19
Revaluation Example.....................................................................................................................................10-21
Currency Rates Manager Description............................................................................................................10-22
Currency Rates Manager Description (continued) ........................................................................................10-23
Currency Rates Manager Benefits .................................................................................................................10-24
Using Cross Rate Rules .................................................................................................................................10-25
Translation Overview ....................................................................................................................................10-26
Translation.....................................................................................................................................................10-28
Balances and Rates Used for Translation ......................................................................................................10-29
Cumulative Translation Adjustment Account ...............................................................................................10-30
Historical Rates .............................................................................................................................................10-31
Translation with Historical Rates and Amounts ............................................................................................10-32
Translating Owners' Equity Accounts ...........................................................................................................10-34
Secondary Tracking Segment Description.....................................................................................................10-36
Secondary Tracking Segment Description (continued) .................................................................................10-37
Secondary Tracking Segment Benefits..........................................................................................................10-38 38
How to Set Up Secondary Tracking Segment ...............................................................................................10-39
Using Secondary Tracking Segment..............................................................................................................10-41
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.......10-41
......10-41

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Secondary Tracking Segment Closing and Translation Example.................................................................10-42 ..............10-42
..............10-42

d
Secondary Tracking Segment Revaluation Example....................................................................................10-43 .................
....................10-43
....10-43
............
...........................10
................10
Automatically Assigned Rate Types..............................................................................................................10-44
...........

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..............................
.....................
Foreign Currency Listings .............................................................................................................................10-46
..............................
..............................
Foreign Currency Reports..............................................................................................................................10-47

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...............................
...........................
Multi-Currency Profile Options.....................................................................................................................10-49
......................
...............................
Summary........................................................................................................................................................10-51

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Consolidations..................................................................................................................................................11-1
...............................
..............................
Consolidations ...............................................................................................................................................11-3

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...............................
Objectives ......................................................................................................................................................11-4
...............................
..............................
......
Overview of Consolidations ..........................................................................................................................11-5

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Consolidation Tools.......................................................................................................................................11-6
Consolidating Multiple Companies Sharing a Single
.............................................
Single Ledger........
Ledger....... ...........................
..........................
Ledger........................................................................11-7
Consolidating Multiple Companies with Multiple

l & On
Global Consolidation System (GCS) Features and Benef
Multiple Ledgers
Ledgers....
Bene
Benefits
................................
...............................
Ledgers...........................................................................11-8
fits .........................
.........................................................................11-9
Global Consolidation System (GCS)
Consolidating Data in Multiple
n a eCS) Features
Features and Benefits
ple Instances...........
Be (continue ......................................................11-10
(continued)
..............................
.............................
Instances......................................................................................................11-12
Interface Data Transformer
Interface Data Transformerformer
t e r U
mer (IDT) Benefs
merr (IDT) Descriptio
Desc
Bene
Benefits
riptio
tion..........................
ion..........................
Description..............................................................................................11-14
ts ........................
...................................................................................................11-15

n
ransformer (IDT)
Interface Data Transformer (IDT R Rule Set Descriptio
Description ..............................................................................11-16
taa Transformer Strin
Interface Data
Interface Data Transformer

e I String Function Examp Example...................................................................................11-17


Transform PL/SQL Function Example ..............................................................................11-18
face Data Transform
Interface

c l Transformer Lookup Table Example ....................................................................................11-19


nterface Data Transformer
Interface Tran Steps ..................................................................................................................11-20

r a G
Other Uses for Global Consolidation System................................................................................................11-21
Consolidati Workbench .............................................................................................................................11-23
Consolidation

O
Cons
Consoli
Consolidation Workbench (continued)..........................................................................................................11-24
Usi the State Controller .............................................................................................................................11-26
Using

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State Controller Button Colors ......................................................................................................................11-28
Defining a Consolidation Mapping ...............................................................................................................11-29
Mapping Rules...............................................................................................................................................11-31
Using Account Mapping Rules......................................................................................................................11-32
Using Segment Mapping Rules .....................................................................................................................11-33
Using Segment Rollup Rules.........................................................................................................................11-34
Defining a Consolidation Mapping Set .........................................................................................................11-36
Consolidation Hierarchy Viewer ...................................................................................................................11-37
Preparing Subsidiary Data .............................................................................................................................11-39
Revaluation Process.......................................................................................................................................11-41
Translation.....................................................................................................................................................11-43
Transferring Subsidiary Data to Parent Ledger .............................................................................................11-44
Consolidation Tracking and Reversals ..........................................................................................................11-46
Posting Consolidation Journal Entries...........................................................................................................11-47
Global Consolidation System Cross Instance Data Transfer .........................................................................11-48
Cross Instance Data Transfer Security...........................................................................................................11-50
Global Consolidation System Parallel Consolidation....................................................................................11-51
Creating Eliminating Entries .........................................................................................................................11-52
Formula-Based Eliminations .........................................................................................................................11-54
Automatic Intercompany Eliminations Program ...........................................................................................11-55
Defining an Elimination Set ..........................................................................................................................11-56
Source and Target Account Examples...........................................................................................................11-58
Balancing Options for Eliminations ..............................................................................................................11-59
Allow Out of Balance Journal .......................................................................................................................11-61
Balance with Net Difference .........................................................................................................................11-62
Consolidated Balances Inquiry ......................................................................................................................11-63 63
Performing Consolidated Balances Inquiry ..................................................................................................11-65
Running Consolidation Reports.....................................................................................................................11-66
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11-65
.......11-66
......11-66

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Creating Custom Consolidation Reports .......................................................................................................11-68 .............11-68

d
....................11-69
...................11-69
Summary........................................................................................................................................................11-69

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..............................1
.............................1
Period Close .....................................................................................................................................................12-1
..............................
.... ..........................
Period Close...................................................................................................................................................12-3

A
...........
...............................
.....................
Objectives ......................................................................................................................................................12-4
...............................
..........................
The Accounting Cycle ...................................................................................................................................12-5

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.............................
Period Close Checklist...................................................................................................................................12-6
...............................
Overview of Importing Journal Entries .........................................................................................................12-7
.............................
............................
Journal Import Verification Process ..............................................................................................................12-9

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...............................
Posting Journals.............................................................................................................................................12-11
..............................
...................................
Reconciling Subledger Data ..........................................................................................................................12-13

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...............................
Close the Subledgers .....................................................................................................................................12-14
.............................
.................
.....................................................
........................
P2P Close Processes ......................................................................................................................................12-16

l & On ............................................................
Overview of the P2P Period Close ................................................................................................................12-18
..............................
............................................................
..............................
Reconcile AP to GL.......................................................................................................................................12-19

n a e................................
...............................
...............................
................................
...............................
Reports...........................................................................................................................................................12-20
...............................
Reports (continued) .......................................................................................................................................12-22
O2C Period Close Process
Overview of O2C Period
t e r U s
sss ............................
..............................
.............................................................................................................................12-25
riod Close Process ........................................................................................................12-26
...........................
..........................

n
vent
entory
Transferring Inventory ory and Receivab
Re ceivab ..................
Receivables........................................................................................................12-27
O2C Standard
ling Receivables Tr
Reconciling

e I
rd Reports .............. .......
...................................................................................................................................12-29
Transactions, Receipts, and Customer Balances ...................................................12-30
pping Receivables Transactions
Mapping

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GL Reconciliation Report R
T to General Ledger Categories ...............................................................12-32
for Cash Management .........................................................................................12-33

r a Clos Cycle
Project Close C .......................................................................................................................................12-34
Overview oof Project Closing Cycles..............................................................................................................12-35

O
Closing a PA Period ......................................................................................................................................12-38
Per
Period-Closing Exception Reports.................................................................................................................12-39

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Period Rates...................................................................................................................................................12-40
Running Revaluation .....................................................................................................................................12-41
Revaluation Example.....................................................................................................................................12-42
Accounting Period Status ..............................................................................................................................12-43
Balance Sheet Close ......................................................................................................................................12-44
Income Statement Close ................................................................................................................................12-46
Historical Rates .............................................................................................................................................12-48
Foreign Currency Translation........................................................................................................................12-49
Overview of Consolidations ..........................................................................................................................12-50
Global Consolidation System (GCS) Features and Benefits .........................................................................12-52
Consolidating Ledgers...................................................................................................................................12-54
Reporting Options .........................................................................................................................................12-55
Performing Account Inquiry..........................................................................................................................12-56
Helpful Closing Reports ................................................................................................................................12-57
Summary........................................................................................................................................................12-59
Financial Reporting.........................................................................................................................................13-1
Financial Reporting .......................................................................................................................................13-3
Objectives ......................................................................................................................................................13-4
Objectives (continued)...................................................................................................................................13-5
Reporting Options .........................................................................................................................................13-6
Online Inquiry ...............................................................................................................................................13-7
When to Use Online Inquiry..........................................................................................................................13-9
Standard Reports and Listings .......................................................................................................................13-10
When to Use Standard Reports......................................................................................................................13-11
Financial Statement Generator Features ........................................................................................................13-12
FSG Hierarchical Security.............................................................................................................................13-14 3-14
Defining Row Sets.........................................................................................................................................13-15....13-15
...13-15
..........13-16
Define Column Sets.......................................................................................................................................13-16
.................13-17
................13-17
When to Use FSG Reports.............................................................................................................................13-17
........................13-1
.................13-1
Using Ledger Sets in FSG Reports ................................................................................................................13-18
.............
..............................
..................
XML Publisher and Templates......................................................................................................................13-20
...........................
Publishing FSG Reports with XML Publisher...............................................................................................13-21
...........................
...............................
When To Use Report Manager ......................................................................................................................13-23
..............................
........................
E-Business Intelligence .................................................................................................................................13-25
................................
...............................
When to Use E-Business Intelligence............................................................................................................13-27
.............................
Oracle Discoverer ..........................................................................................................................................13-28
.............................
............................
When to Use Oracle Discoverer ....................................................................................................................13-29
...............................
Preparing Your FSG Report ..........................................................................................................................13-30
...............................
.......
......
Building Basic Reports..................................................................................................................................13-31

..............................
l y
.............................................
Financial Statement Generator ......................................................................................................................13-32
...............................
...........................
..........................
Steps for FSG Financial Reports ...................................................................................................................13-34

n
............................................................
Defining Row Sets.........................................................................................................................................13-35

Reviewing Your Row Set Definitions


..............................
O
...........................................................
Assigning Accounts.......................................................................................................................................13-37
ts............................
.............................
..........................................................
Defining Calculations in Row Sets................................................................................................................13-39
finitions ................
e
..............................
.............................
...........................................................................................................13-40
Defining Ad Hoc Reportss ............................
Defining Column Sets
Applying Column
lumn
mn Set
ets
ts ...........................
Set Relative Head
umn Sets ..............
Standard Column
Hea
s
.............................
..............................................................................................................................13-41

U
...........................
..........................
...................................................................................................................................13-42
..................
Headings......................................................................................................13-44
........
...................................................................................................................................13-46
ing
Reviewingng Your Column
Column Se Set Definitions......................................................................................................13-47

c l e
Row Set and Column
Colu
Defining and Requesting
Reque
O
Overrides ....................................................................................................................13-48
Financial Reports ..................................................................................................13-50

r a
Handling Ro
Round
Rounding Problems........................................................................................................................13-52
Specifying Control Values.............................................................................................................................13-53

O
Defi
Definin
Defining Content Sets....................................................................................................................................13-55
Sel
Selecting Display Options .............................................................................................................................13-56

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Reviewing Your Content Set Definitions ......................................................................................................13-58
Defining Row Orders.....................................................................................................................................13-59
Ranking Methods...........................................................................................................................................13-60
Order by Ranking - Display Description .......................................................................................................13-61
Order by Description - Display Description ..................................................................................................13-62
Order by Value - Display Value ....................................................................................................................13-63
Order by Value - Display Description ...........................................................................................................13-64
Reviewing Your Row Order Detail Listing Report .......................................................................................13-65
Copying Reports and Components ................................................................................................................13-66
FSG Report Prerequisites ..............................................................................................................................13-67
Enabling FSG Security ..................................................................................................................................13-68
Run FSG Reports from Standard Request Submission..................................................................................13-69
Downloading Financial Reports ....................................................................................................................13-70
Running Financial Report Sets ......................................................................................................................13-71
Different Output Options for FSG Using XML Publisher.............................................................................13-72
FSG Tips and Techniques..............................................................................................................................13-73
Setting FSG Options for General Ledger ......................................................................................................13-74
Working with the Attribute Set Window.......................................................................................................13-76
Modifying Attribute Sets ...............................................................................................................................13-77
Defining Summary Details ............................................................................................................................13-79
Summary........................................................................................................................................................13-80
Summary (continued) ....................................................................................................................................13-81

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Preface
Profile
Prerequisites

• Navigating Oracle Applications

How This Course Is Organized

R12 Oracle General Ledger Management Fundamentals, Edition 1.0 is an instructor-led course
featuring lecture and hands-on exercises. Online demonstrations and written practice sessions
reinforce the concepts and skills introduced.

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Related Publications
Oracle Publications

• System release bulletins

• Installation and user’s guides

• Read-me files

• International Oracle User’s Group (IOUG) articles

• Oracle Magazine

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Typographic Conventions
Typographic Conventions in Text
Convention Element Example
Bold italic Glossary term (if The algorithm inserts the new key.
there is a glossary)
Caps and Buttons, Click the Executable button.
lowercase check boxes, Select the Can’t Delete Card check box.
triggers, Assign a When-Validate-Item trigger to the ORD block.
windows Open the Master Schedule window.
Courier new, Code output, Code output: debug.set (‘I”, 300);
case sensitive directory names, Directory: bin (DOS), $FMHOME (UNIX)
(default is filenames, Filename: Locate the init.ora file.
lowercase) passwords, Password: User tiger as your password.
pathnames, Pathname: Open c:\my_docs\projects
URLs, URL: Go to http://www.oracle.com
user input,
User input: Enter 300
usernames
Username: Log on as scott
Initial cap Graphics labels Customer address (but Oracle Payables)
(unless the term is a

Italic
proper noun)
Emphasized words Do not save changes to the database.
m y
and phrases,
titles of books and
For further information, see Oracle7 Server SQL Language
Reference Manual.
d e
courses,
variables
Enter user_id@us.oracle.com, where
name of the user. a
here user_idd is the

c
Quotation
marks
Interface elements
with long names

e
Select “Include a reusable module
A
le component” and click Finish.
ule

that have only


initial caps;
cl This subject is covered in
Objects.”
n Unit II, Lesson 33, “Working with

r a
lesson and chapter
titles in cross-

Uppercase
references
SQL columnO ly Use the SELECT com
co mmand to view information stored in the
command

l & On
names, commands, LAST_NAME

a e
functions, schemas,s, column of the
hee EMP table.

n
table names
Arrow
Brackets
Commas
t e r s
Menu paths
Key names

U
hs

Key sequences
Selec
Select
ect File > Save.
Press
P
Press
[Enter].
ress and rele
release keys one at a time:

I n ernat [F], [D]


[Alternate],

e
Plus signss Key com
combi
combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

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ra
O
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Typographic Conventions in Code
Convention Element Example
Caps and Oracle Forms When-Validate-Item
lowercase triggers
Lowercase Column names, SELECT last_name
table names FROM s_emp;

Passwords DROP USER scott


IDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER
(OG_GET_LAYER (‘prod_pie_layer’))

Lowercase Syntax variables CREATE ROLE role


italic
Uppercase SQL commands and SELECT userid
functions FROM emp;

Typographic Conventions in Oracle Application Navigation Paths


This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
m y
This simplified path translates to the following:
d e
1. (N) From the Navigator window, select Invoice then Entry then Invoice
nvoice Batches
ca
Summary.

e A
2.
l
(M) From the menu, select Query then Find.

c
3. (B) Click the Approve button.
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Notations:
O ly
(N) = Navigator
l & On
(M) = Menu
n a e
(T) = Tab
t e r U s
(B) = Button
utton
I n
l e
(I) = Icon

c
r a (H) = Hy
Hyperlink

O (S = Sub Tab
(ST)

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xiv
Typographical Conventions in Oracle Application Help System Paths
This course uses a “navigation path” convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.

The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals

—represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system
window.

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xvi
Oracle General Ledger
Process
Chapter 1

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Oracle General Ledger Process


Chapter 1 - Page 1
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Oracle General Ledger Process


Chapter 1 - Page 2
Oracle General Ledger Process

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Oracle General Ledger Process


Chapter 1 - Page 3
Objectives

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Oracle General Ledger Process


Chapter 1 - Page 4
Oracle General Ledger Overview

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Oracle General Ledger Overview

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The Oracle General Ledger is the central repositoryy of accounting ininformation. The main

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purpose of a general ledger system is to record financial activity of a company and to produce
financial and management reports to help people
eople outside the organization make
ople inside andd outs
decisions.
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Chapter 1 - Page 5
General Ledger Overview

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General Ledger Overview
Oracle General Ledger is a comprehensive financiall management sol
c l e
solution that enables you to:
• Record and Review Accounting Information ion
on
• Import data from subsidiary ledgers, or enter journals
transactions directly into Oracle General Ledger.
• Enter encumbrance journalss to track encumb
encum
r.
mbrances
ls to record

n y
reco actual or budget
reco

l
rances through the purchase process and to
encumbrances
control spending againstt budgeted amoun ounts.
amounts.
alances online orr through
• Review account balances t reports
e
reports.
O
ect, and adjust ac
• Analyze, correct,
• Correct actual, budget, an
U s
ccounting inform
accounting information.
umbrance information.
and encumbrance

e I
value and translate balances denominated
• Revalue no in foreign currencies.

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bal
• Consolidate balances
• Analyze Accounting
from multiple ledgers.
Information

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Integr Oracle General Ledger with Oracle Enterprise Planning and Budgeting, Oracle
• Integrate

O D
Discoverer, or Web Applications Desktop Integrator to simplify the budgeting and
forecasting process.

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Oracle General Ledger Process


Chapter 1 - Page 6
Functions and Features

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Functions and Features
Information Access
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• Access information stored in the General Ledger
Ledger through online
o inquiries or reporting and

information. O ly
analysis tools. Oracle General Ledger is the repository your organization's financial
ryy off yo

Financial Controls
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n a e
• Use security features to cont
control
rol access to specific areas and
a functions of General Ledger.

r
Data Collection
• Collect data from
t e U s
rom Oracle suble
edgers and non-Oracle
subledgers non-O feeder systems.
porting and Analy
Financial Reporting
n Analysis
ect from a variety of Standard Re
• Select
I Reports and Listings.

c l e
• Use the Financial
objects.
Financi Statement Generator to build customized reports with reusable report

r a W ADI (Web Applications Desktop Integrator) Report Manager to build reports


• Use Web
an drilldown on balances within a spreadsheet environment.
and
O
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Oracle General Ledger Process


Chapter 1 - Page 7
General Ledger Accounting Cycle

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General Ledger Accounting Cycle
1. Open period
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2. Create/reverse journal entries
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3. Post
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& On
4. Review
5. Revalue
6. Translate l
a e
7. Consolidate
r n s
t e
ect balances
8. Review/correct

n U
ccounting
counting reports
9. Run accounting
I
10. Close accounting period
e
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Oracle General Ledger Process


Chapter 1 - Page 8
Critical Implementation Issues

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Critical Implementation Issues
Shared information
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• Oracle Applications share information to avoid redundancy
redundancy, minimize setup time, and
keep systems synchronized.
O ly
• Identify the key entities shared by Applications.
y Oracle Applica cations.

l & On
quired by multiple
• Define setup parameters required ple applications.
Information Flows

n a e
• Record transactions

t e r U s
ns once and pass
sss th
them
em to the nex
interfaces to im
• Use Oracle Applications open interfaces
next business process.
import transactions.
aces
ces
Open interfaces
I n
ansfer data within Oracle Applications.
• Transfer

c l etransact
• Import transactions from other applications into Oracle Applications.

a
Sy
Non-Oracle Systems

O r Obta input from all business areas and applications that are affected by the
• Obtain
i
implementation.

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Oracle General Ledger Process


Chapter 1 - Page 9
Oracle General Ledger Integrates with …

m y

A c
Oracle General Ledger Integrates with …
Here is a list of just some of the Financial and Human
integrate with General Ledger.
man
c l e
Management products that
an Resource Man

• Oracle Payables sends invoices, payments,ments,


ents, realized ain and loss on foreign currency, and
realized gain
gai
invoice price variance to GL.
voices, payments,
• Oracle Receivables sends invoices,
n l y
ts, adjustments, ddebit memos, credit memos,
ealized gain andd loss
cash, chargebacks, and realized
• Oracle Assets sendss capital and construction
cons
l
nstruction in
e O
on foreign currency to GL.
n proc
process asset additions, cost adjustments,
ments, depreciatio
transfers, retirements, deprecia
rchasing sends ac
• Oracle Purchasing
t e U s
tion, and reclassi
depreciation, reclassifications to GL.
als or receip
accruals receipts not invoiced, purchase orders, final closes,

I n
ncellations to GL
and cancellations GL.

e
• Oracle Projects sen sends cost distribution of labor and non-labor costs, and project revenue to
GL.
c l
r a Tr
• Oracle Treasury sends revaluation and accrual entries to GL.
Orac Property Manager sends revenues and expenses related to real estate to GL.
• Oracle

O
Copyright © Oracle Corporation, 2007. All rights reserved.

Oracle General Ledger Process


Chapter 1 - Page 10
• Oracle Lease Management sends accounting distributions related to leases, such as
bookings of contracts, accruals, asset dispositions, terminations, and adjustments for
multi-GAAP contracts to GL.
• Oracle HR shares employee information with GL.
• Oracle Payroll sends salary, deductions, and tax information to GL.

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Chapter 1 - Page 11
Oracle General Ledger Integrates with …

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Oracle General Ledger Integrates with …

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• In terms of manufacturing and public sector applications,
plications, Inventory
Invent sends cycle counts,

r a
physical inventory adjustments, receiving transactions,
intercompany transfers, sales order issues,
ues, internal
delivery transactions,
ransactions, deliv
internal requisitions,
quisitio sub-inventory transfers,
requ
O ly
and Cost of Goods Sold (COGS) too GL.
• Work In Process sends material

l
ource& On
al issues orr backf
urce and overhead
completions, returns, resource overhea
ckflush
kflush from WIP to GL, as well as
backflush
over ead transactions, and cost updates.
bution sends salar
• Oracle Labor Distribution
n a e ary costs to GL.
salary

t e
enue to GL.
unbilled revenue r
• Oracle Grants Accounting sends

U sds grant amounts received to build a project as well as

I n
• Oraclee Public Sector Bu
Budgeting sends
sends budget and forecast amounts to GL.

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Oracle General Ledger Process


Chapter 1 - Page 12
Also Integrates with …

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Also Integrates with …

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• General Ledger's integration with Oracle Enterpriserprise
prise Planning an and Budgeting (EPB) allows

r a
you to easily identify, analyze, model, budget,
get, forecast, and report on information stored
in your general ledger. Use Oracle GL to maintain and rreport on account balances
d repo
O ly
throughout the accounting period, and use Financial iall Analyzer to analyze financial data,
Financia

l & On nces, after closing


such as actual and budget balances,
dat
transfer actual, budget, or encumbrance data,
ing
ng the period.
period. Y
You can automatically
ata, as well as functional,
fun statistical, and foreign

n
neral
entered data from General
a e
eral Ledger to Financial
Fi
Financial Analyzer.
Analyze From Financial Analyzer, you

back budget data


e r
sticated budgetin
can perform sophisticated
s
ata to a new budg

t U
ing and modeling
budgeting mode
modeling, make changes to budgets and write
dget in GL or to sseveral budget versions for comparative
budget
dri directly
reporting. You can also drill rectly from EPB balances to balances and transactions in

I n
Oraclee General Ledger
ata without having
data
vides EPB users with immediate and direct access to GL
Ledger. This provides

e
havin to run reports or account inquiries in GL.

c l
• Oracle Financ
Financial Services Applications (OFSA) is a product suite that helps financial

a
in
services institutions assess enterprise performance. This integration allows the transfer of

O r Gener Ledger balances to OFSA to reconcile OFSA instrument tables, calculate transfer
General
pr
pricing of non-interest balance sheet items, or perform allocations. The results of OFSA

Copyright © Oracle Corporation, 2007. All rights reserved.

Oracle General Ledger Process


Chapter 1 - Page 13
allocation and transfer pricing results can then be transferred back to GL for posting and
reporting.
• The integration with Oracle Daily Business Intelligence (DBI) allows you to get a daily
snapshot of your company's financial picture through its E-Business Suite Portals. The
over 200 pre-built Portals provide every user in the enterprise with the right information
that they need, about every aspect of their business. The information spans across multiple
applications to give you real-time information all in one place.
• The integration with Oracle Activity Based Management (OABM) allows you to perform
complex analysis on costs that are collected in General Ledger in a separate analysis
environment—apart from your GL data. OABM is optimized to support multi-layer
complex cost assignment rules, activity hierarchies, and complex product and service
definitions in terms of activities with complete activity definitions.

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Chapter 1 - Page 14
Integrating with Subledgers

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Integrating with Subledgers

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Transferring information from Oracle subledgers is a two-step proce process:

r a
• Data is pushed into the GL_INTERFACE ta table
able from the susubledger using a transfer
program.
O ly
• Then Journal Import pulls the information
formation from m the
th table to create valid, postable
he interface ta

l & On
edger.
dger.
journal entries in General Ledger.

Oracle Receivables, you


n a e
er program
When you initiate the transfer ogram from
u can choose to al
m Oracle
O
also submit
subledge such as Oracle Payables or
subledgers,
submit the JoJournal Import process. If you do not
al Import from th
choose to run Journal

t e r U s the subledger,
subledger, you must run Journal Import separately in
General Ledger,, using the Import Journals
ournals windo
window, in order to create postable journal entries.

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Oracle General Ledger Process


Chapter 1 - Page 15
Importing to General Ledger from Non-Oracle Applications

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Journal Import
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Importing to General Ledger from Non-Oracle Applications plications

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• Use Journal Import to automatically import rt budget, actual, and encumbrance data from

interface. O ly
your non-Oracle applications. You can n create SQL Loader
oader script
Loa s to load the data into the

• You can also check funds and


l & On
d reserve them forfo your imported transactions.
• Web Applications Desktop

n a e
ktop
top Integrator (Web
(Web ADI)

r
• You can enter dataa in a spreadsheetet and upload to GGeneral Ledger:

t e
- Prepare and analyze bud
U s
budge
gets.
budgets.

I n
pare functional an
- Prepare eign journ
and foreign journal entries.

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Oracle General Ledger Process


Chapter 1 - Page 16
Overview of Accounting Setup Manager

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Oracle General Ledger Process


Chapter 1 - Page 17
Foreign Currency Concepts

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Foreign Currency Concepts
Conversion
c l
r a
• Conversion refers to foreign currency transactions
nsactions
nsactions that are immediately converted at the

Revaluation O ly
time of entry to the ledger currency off the ledger in wh the transaction takes place.
which th

l
• Revaluation adjusts liability
& On
y or asset account
nts that may be m
accounts materially understated or

n a e
overstated at the end of a period due to a fluctuation
the transaction was entered and thee end
tuation in tthe exchange rate between the time
e of the period
period.
Translation

t e r U
• Translationn refers to the ac
s
act of restating an entire ledger or balances for a company from

I n
dger currency to a foreign currency.
the ledger urren

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Copyright © Oracle Corporation, 2007. All rights reserved.

Oracle General Ledger Process


Chapter 1 - Page 18
Multiple Currency Support

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Multiple Currency Support

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Reporting Currencies are integrated with ledgers. You reporting currency as a part
ou specify the rep

r a
of the ledger with which you are working.

three different levels: O ly


• Reporting currency is flexible. You can an maintain additional
itional currency representations at
maintain additi
ditional

- Balance level
l & On
- Journal level

n a e
r
- Subledger level el

t e U
alances are stored
Ledger, balances
s
• Balance level maintains translated
translaated balances.
balances Every
stor in a balance level
E time you run translation in General
le reporting currency.
nal level, is a curr
• Journal
I n ent
currency representation of only your GL journals and balances. Every
ime you post a journal
time

c l e curr
jo
reporting currencies.
in GL, the journal will be converted to one or more journal level

r a Subledg level is a complete currency representation of your subledger transactions, GL


• Subledger
journ entries and balances.
journals

O
Copyright © Oracle Corporation, 2007. All rights reserved.

Oracle General Ledger Process


Chapter 1 - Page 19
Every time you enter a subledger transaction or enter and post a journal directly in GL, the
same transaction and journal will be converted to one or more associated subledger level
reporting currencies.
Reporting Currencies are not the same as secondary ledgers. Looking at the 4 C's that define a
ledger, we have a chart of accounts, calendar, accounting method, and currency.
If you only need multiple currencies to support your reporting requirements, use reporting
currencies.
If you need to account for your data using different calendars, charts of accounts, accounting
methods in addition to currency, use a secondary ledger.

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Oracle General Ledger Process


Chapter 1 - Page 20
Budgeting

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Budgeting
Budgeting in Oracle General Ledger (GL)
c l
r a
• Create an unlimited number of budgets or forecasts.
• Control user access to budgets.
O ly
& On
• Create budget organizations to mirror the various
various your company's organization
us levels of you

l
and to control user access to

a e
udgets.
• Create master-detail budgets.
information.
o the budget infor
formation.
ormation.

r n s
Budgeting with Web Applications Desk sktop Integrator (Web
Desktop ( ADI)

General Ledger.
n t e U
• Enter budgett amounts in the familiarity
familiarity of a spreadsheet,
s then upload your budget data to

e I
wnloads both budget
• Downloads bud or actual amounts
am and use to calculating new budget amounts,

c l th new budget amounts into Oracle General Ledger.


then be upload the
a use Oracle Planning and Budgeting to update budget balances in General
Note: You can also

r a
Ledger. For more information, refer to the Oracle Planning and Budgeting User’s Guide.

O
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Oracle General Ledger Process


Chapter 1 - Page 21
Overview of Enterprise Planning and Budgeting (EPB)

m y

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Overview of Enterprise Planning and Budgeting

c
What is Enterprise Planning and Budgeting (EPB)?
• An application built on the integrated multi-dimensional and relational technology in
lti-dimensional an
Oracle10g

n l y
• An application for planning, budgeting, forecasting,
geting, forecastin
forecas ing, reporting, monitoring, and analysis
ting,

a l
• An application that providess sophisticated data

O
• A keystone of Oracle's CPM initiative
da modeling an and multi-dimensional analysis

r
ilored
lored for custom
• An application tailored
n se custome
mer's own busine
customer's business processes

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Oracle General Ledger Process


Chapter 1 - Page 22
Reporting and Analysis

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Reporting and Analysis
Online Account and Transaction Analysis:
c l
r a
• Drilldown to account balances and journall entries
entries to their ssource. For example, you can

Standard Reports and Listings: O ly


drill down from a Payables journal entry
ntry nal transaction
try to the original tran in Oracle Payables.

l
vides over 70 diffe
• Oracle General Ledger provides
& On diff
fferent standard rreports and listings to help you
different

n a e
financial inform
view financial and non-financial informa
mation.
ation.
information.

r
enerator
nerator reports:
Financial Statement Generator

e
nancial statements
custom financial
t U s
• The Financiall Statement Generator
Gener
erator
rator (FSG) is a powerful tool that allows you to create
statement without
thout progr
programming.

I n
Web ADII Report Manager:
Manager

c l e Man
• With Report Manager, you can define reports graphically in Excel, then upload the report
definitions to General Ledger as Financial Statement Generator (FSG) report objects. You

r a can also download existing FSG reports, modify them in Report Wizard, then save the
mod
modified definition to General Ledger. You can select amounts from spreadsheet-based

O
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Oracle General Ledger Process


Chapter 1 - Page 23
FSG reports and drill into the underlying financial information within Oracle
Applications.
Oracle Enterprise Planning and Budgeting:
• Use Oracle Enterprise Planning and Budgeting, Oracle's On Line Analytical Processing
(OLAP) application, to perform in depth analysis, modeling, budgeting, reporting, and
forecasting functions using General Ledger data without additional data entry.

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U s

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Oracle General Ledger Process


Chapter 1 - Page 24
Standard Reports and Listings

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Standard Reports and Listings

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Oracle General Ledger provides several types of reports
ports and listings to meet your business

r a
needs. All of the information in these reports and
nd listings is also available online.

O ly
You can obtain account analysis information,on, budget information,
many other types of data without customization.
omization.
rmation chart of accounts listing, and
inform

l & On
eports provide the
Oracle General Ledger standard reports th following
following fun
functionality:

continue to work.
n a e ge rated and printed
• Request reports online. Your report is generated prin in the background while you

bmit
• Group and submit

t e r U s
mit reports into report
r sets to sav
r larly scheduled
• Schedule reports to run at regularly
save time.
schedu intervals.

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Oracle General Ledger Process


Chapter 1 - Page 25
Financial Statement Generator Reports (FSG)

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Financial Statement Generator Reports (FSG)
You can define custom financial reports, such as incomecome statements aand balance sheets, online

r a
with complete control over the rows, columns, and content off your
account assignments, headings, descriptions, s, format,
yo report. You can control
calculations
format, and cal
alcula in addition to the actual
O ly
content. The reusable report components ts make building quick and easy. You can copy
g reports qu

l & On
a report component from one report,
reate
rea
new report without having to create
t, make minor edits,
te a new report
repor
ed then apply tthe report component to a
ort from scratch.

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Oracle General Ledger Process


Chapter 1 - Page 26
Summary

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Chapter 1 - Page 27
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Chapter 1 - Page 28
Accounting Setup Manager

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Chapter 2

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Chapter 2 - Page 1
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Chapter 2 - Page 2
Accounting Setup Manager

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Chapter 2 - Page 3
Objectives

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Chapter 2 - Page 4
Accounting Setups

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Accounting Setups

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An accounting setup defines the accounting context for one or mo more legal entities or a business

r a
need if legal entities are not involved.

• legal environment O ly
Defining an accounting setup is based on several
everal factors, such
su as as:

l & On
intained
ntained in the same
• number of legal entities maintained sam
ame primary ledg
ledger
• business needs

n a e
• transaction processing
ould
t r s
ssing needs

e U
uld be assigned
Legal entities should assigne toto accounting setups
se to maintain a legal entity context for
transactions and

I n
nd use Oracle fin
financiall subledge
hould be assigned to accounting
entities should
subledgers that require a legal entity context. No legal
ng setups if there are business needs that do no require a

c e
legal entity context.
l ar involved, the general rule is to define a separate accounting setup for each
If legal entities are

a
legal entity oor group of legal entities that require their own primary ledger. In other words, if
r enti
legal entities require any one of the following attributes to be different from other legal entities,

O diff
a different primary ledger is required, and therefore a different accounting setup is required:

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Accounting Setup Manager


Chapter 2 - Page 5
• Chart of Accounts: One legal entity requires a six-segment chart of accounts and another
requires only a four-segment chart of accounts.
• Accounting Calendar: One legal entity uses a 4-4-5 calendar and another uses a monthly
calendar; or one legal entity has a different fiscal year end than another.
• Primary Currency: Legal entities operate in different countries requiring them to use their
own local currencies.
• Subledger Accounting Method: Legal entities operate in different countries or industries
that have different accounting standards.
• Ledger Processing Options: Legal entities operate in different industries, such as retail and
financial services, and require different ledger processing options, such as maintaining
average daily balances for legal entities in the financial services industry.

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Chapter 2 - Page 6
Ledger Processing Options

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Ledger Processing Options

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Based on the above information, four different accounting
unting setups are created because each
ounting

r a
legal entity requires its own primary ledger. If the
West) share the same ledger processing options,
ions, they
lega entities (U.S. East and U.S.
he two U.S. legal
hare tthe same primary ledger and be
they can sha
share
O ly
included in the same accounting setup.

l & On
fined at the ledger
Ledger Processing Options are defined le ger level and refer to the following options
that control how journals and transactions aree processed
p for tha
that ledger:

n a e
eriod
• First Ever Opened Period
• Number of Future

t e r
• Retained Earnings Account
U s
re Enterable Peri
riods
Periods

edger
dger Accounting Options, such
• Subledger
I n uch aas the subledger accounting method, journal

e
escription language,
description langua entered currency balancing account, cash basis accounting, and the

c l currenc balancing account


ledger currency

r a
• Option to track balances using a secondary segment
Susp
• Suspense Account

O • Rounding Differences Tracking Account

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Accounting Setup Manager


Chapter 2 - Page 7
• Intracompany Balancing option
• Journal Approval
• Journal Entry Tax
• Journal Reversal Criteria Set
• Default Period End Rate Type
• Default Period Average Rate Type
• Cumulative Translation Adjustment Account
• Journal Reconciliation
• Budgetary Control
• Reserve for Encumbrance Account
• Average Balance Processing
• Average Balance Consolidation
• Net Income Account
• Transaction Calendar
If there are legal entities that require any one of the above ledger processing options to be
different, then define a separate primary ledger for each legal entity and therefore, a new
accounting setup.

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Chapter 2 - Page 8
Secondary Ledgers

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Secondary Ledgers

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Assign an unlimited number of secondary ledgers to o each primary leledger of an accounting

r a
setup. Each secondary ledger can be maintained at one of the fol following data conversion levels:

O ly
• The subledger level secondary ledger maintains
entries, and balances in the additional
maintains subledger
onal accounting
accounting
sublededger journals,
jo general ledger journal
rrepresentation. This data conversion
g representatio

l & On counting and the


level uses both Subledger Accounting
the necessary journals in both the primary
primary
the General Ledger Posting program to create
y and secondary ledgers simultaneously.

n a e
Subledger Accountingg creates the jour urnal entries
journal entries from subledger transactions if the

r
ates
tes with Subledge
subledger integrates
s dger
ger Acc
Subledger
ess for all other transactions
journal entries
t e U
Accounting.
ounting. General Ledger Posting creates the
transactions that
th ddo no integrate with Subledger Accounting,

n
includingg manual journal eentries. s.

e I
• The journal level secondary
sec ledgerr m
maintains primary ledger journal entries and balances

l
a
in an additional accounting representation. This type of secondary ledger is maintained

a c
using the Gen
General Ledger Posting program. Every time a journal is posted in the primary
th same journal can be automatically replicated and maintained in the secondary
ledger, the

O r ledge for those journal sources and categories that are set up for this behavior.
ledger

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Accounting Setup Manager


Chapter 2 - Page 9
• The balance level secondary ledger maintains primary ledger account balances in another
accounting representation. This type of secondary ledger requires Oracle General Ledger
Consolidation to transfer primary ledger balances to this secondary ledger.
• The adjustments only secondary ledger level is an incomplete accounting representation
that holds only adjustments. The adjustments can be manual adjustments or automated
adjustments from Subledger Accounting. This type of ledger must share the same chart of
accounts, accounting calendar/period type combination, and currency as the associated
primary ledger. To obtain a complete secondary accounting representation that includes
both the transactional data and the adjustments, use ledger sets to combine the
adjustments-only secondary ledger with the primary ledger when running reports.

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Chapter 2 - Page 10
Reporting Currencies

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Reporting Currencies

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If you only need a different currency representation n of the primary or secondary ledgers, assign

r a
reporting currencies to them. Unlike secondary le
same chart of accounts, accounting calendar/period
r/period
r/pe
dgers, reporting currencies must share the
ledgers,
combination,
riod type com
ombin subledger accounting
O ly
method, and ledger processing options as their source ledger.
le

l & On
rting currencies
As a general rule, always use reporting currenc s iinstead of secon
need to maintain an accountingg representation
representationn that
t differs in cu
secondary ledgers if you only
currency alone.

n a e
You can assign reporting currencies to bot oth primary and ssecondary ledgers. Reporting
both

• The subledger
ined

t
ned at one of th
currencies are maintained

e r U s
ger level reportin
he following curr
the
reporting currency ma
main
currency conversion levels:
maintains a complete currency representation of

bledger
I
ubledger
n
bledger journals, Generall Ledge
your subledger
ledger level reporting
subledger repo
Ledger journals entries, and balances. When using the
currency, define currency conversion rules. These rules provide

c l e
instructions on hhow to convert subledger and general ledger data to one or more subledger
reporti currencies. Subledger level reporting currencies are maintained using both
level reporting

r a Subledg Accounting and the General Ledger Posting program to create the necessary
Subledger
subl
subledger journals and General Ledger journals in both the primary and secondary ledgers

O simultaneously. Subledger Accounting creates the journal entries from subledger

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Accounting Setup Manager


Chapter 2 - Page 11
transactions if the subledger integrates with Subledger Accounting. General Ledger
Posting creates the journal entries for all other transactions that do not integrate with
Subledger Accounting, including manual journal entries.
• The journal level reporting currency maintains General Ledger journal entries and
balances in another currency representation. Journal level reporting currencies are
maintained using the General Ledger Posting program. Every time a journal is posted in
the source ledger, such as the primary or secondary ledger, the journal is automatically
converted to the respective currency of the journal level reporting currency.
• The balance level reporting currency only maintains balances in another currency. It
maintains the translated balances of the source ledger. Every time general ledger
translation is run in the source ledger, such as the primary or secondary ledger, the
translated balances are reflected in the balance level reporting currency.

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Chapter 2 - Page 12
Accounting Setup Considerations

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Accounting Setup Considerations

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Before creating accounting setups, carefully consider err the number of legal entities that you want
to assign to each accounting setup.
r a
O ly
Associate each accounting setup with one of the following
• Accounting Setups with One Legal gal Entity
aaccounting
g accou
ac cou environment types:

l & On
ultiple Legal Entities
• Accounting Setups with Multiple Entit
tities
• Accounting Setups with th

n a e
h No Legal Entities
Entiti
tities
ities

t e r U s
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Chapter 2 - Page 13
Accounting Setups with One Legal Entity

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Accounting Setups with One Legal Entity

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You should only assign one legal entity to an accounting
nting setup type iif your legal entities meet
unting
any one of the following criteria:
r a
O ly
• Operate in a country with strict legislative
maintain its accounting data separate
rate
ra
requirements
ative requirement
requirem
te from other legal
nts that require the legal entity to
le entities

l & On
ory rules that requ
• Have specific legal or statutory require a separate le
require ledger for the legal entity
• Require different primary

n a e
ry ledger attribute
entity requires any one of the follow
utes from other le
attributes
wing ledger attrib
following
legal entities. For example, the legal
attributes to be different from other legal
entities:

t e r
- Chart of Accounts: On
U s egal entity re
One legal requires a 10-segment chart of accounts and
nother requires a 6-segment
another
I n nt char
chart of accounts.

e
C
- Accounting Calendar: One legal entity requires a weekly calendar and another

c l
requires a monthly calendar.

r a Prim
- Primary Currency: There are legal entities and companies that require different
primary currencies to act as their main record-keeping currency.

O
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Accounting Setup Manager


Chapter 2 - Page 14
- Subledger Accounting Method: One legal entity uses the accrual method of
accounting and another uses the cash basis of accounting.
- Ledger Processing Options: One legal entity wants to translate revenue and expense
accounts using period-end balances while another legal entity wants to use year-to-
date balances.
• Need autonomous document sequencing of transactions and journals for each legal entity
• Need to open and close periods autonomously for each legal entity
• Have tax requirements that are specific for a legal entity

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Chapter 2 - Page 15
Accounting Setups with Multiple Legal Entities

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l
Accounting Setups with Multiple Legal Entities

c
If an accounting setup has more than one legal entity ty
y it means that mmultiple legal entities can

r a
share the same primary ledger attributes, such ass the same chart of accounts, accounting
calendar/period type combination, currency, accounting
y,, subledger accou ountin method, and ledger
processing options.
O ly
l & On
hee same accountin
Assign multiple legal entities to the
the accounting setup meet all of the following
ting
accountinging setup if all of the legal entities assigned to
g criteria:
c

n a e
• operate in a country that allows multip ltiple
tiple legal
multiple legal entitie
entities to share the same primary ledger
utes, such as thee same chart
and ledger attributes,

t e
ccounting r
counting method
subledger accounting
U s
method, document seq
chart of aaccounts, calendar, primary currency,
sequence, and accounting options
• do not need
I n
eed to have diffe dger pro
different ledger processing options for each legal entity. For example,
al entities can use the same general ledger translation rule and cumulative translation
legal

c l e acco
adjustment accounts to translate balances.
• do not need to open and close periods independently by legal entity

r a
• do not require autonomous document sequencing for a legal entity

O d not have tax requirements that are specific for a legal entity
• do

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Chapter 2 - Page 16
Accounting Setups with No Legal Entities

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Accounting Setups with No Legal Entities

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Accounting setups that do not have legal entities assignedsigned can be used
use for multiple purposes

r a
based on business needs. For example, define ann accounting setup
if a legal entity context is not required for transaction
setu with no legal entity assigned
processing,
ransaction proces sing or use it to supplement the
essing
O ly
accounting contained in other accounting have
ng setups that hav entities assigned.
ave legal en
You can use accounting setups with

l & Onth no legal entitie


ties
ies for the follow
entities following business needs:

a e
• You do not need to maintain tain
ain transactions
transactions
ns using a legal en
entity context.

r n
parate
arate instance
• You are using a separate instance of General Ledger

s
grate with Oracle
not plan to integrate Oracle financial suble
Led as a standalone application and do
subledgers that require a legal entity context.
• You are not
t e U
ot integrating with Oracle

n
racle financi
financial subledgers but are using Subledger

• You
e
unting
nting to integrate Oracle Genera
Accounting
I
ou want to maintain
General Ledger with non-Oracle systems.
maint an additional accounting setup for management reporting purposes

c l consolidatio purposes.
or consolidation

r a
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Accounting Setup Manager


Chapter 2 - Page 17
Designing the Chart of Accounts

m y

A c
Designing the Chart of Accounts
If your company uses legal entities and wants the abilitybility to identify
transaction processing, designate the balancing segment of the ch c l e
identiff llegal entities during
chart of accounts as the legal
entity or company segment. This enables you transactions
ou to identify tran
ansact per legal entity and take
full advantage of the legal entity accounting
accounting.
available,
nting features ava
l y
such as intercompany
vailable, suc

n
ities
ties that use different
If you have multiple legal entities
alue sets that you
you limit the number of value
n s
diffe
fferent
O
rent charts of aaccounts, it is recommended that
ouu define for the bbalancing segment. This allows you
e
uee set across multiple
to share the same value

t e r mult
ultiple
ltiple charts
charts of accounts
orr each legal entityy thatt is consis
segment values for
U
consist
ac and assign unique balancing
consistent across charts of account.

I n
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Accounting Setup Manager


Chapter 2 - Page 18
Summary

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Chapter 2 - Page 19
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Chapter 2 - Page 20
Ledger

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Chapter 3

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a d
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Chapter 3 - Page 1
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Chapter 3 - Page 2
Ledger

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Chapter 3 - Page 3
Objectives

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Chapter 3 - Page 4
Objectives

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Chapter 3 - Page 5
Ledgers Defined

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Ledgers Defined

c l
A fundamental concept in Oracle Applications is thee "Ledger."
"Ledger." The Ledger
L represents an

r a
accounting representation for an organization that hat is accountable in a self-contained way.

O ly
A ledger owner might be a legal entity, a group of comp
a substantial operation within a legal entity
ntity but wi
with
companies
compani
legal
th leg
nies in a common legal environment,
attributes, or a foreign branch.
egal entity att

l & On
ate
Ledgers are also used to consolidatete and manage
implementation, "a legal entityy accounts
mana Organizational
accounts for itse
O
tself in a ledge
itself ledger."
MModels in reporting. In a pure

A ledger provides balanced


n a e
ed ledger accoun
unting for the acco
accounting accounting entity and serves as the
al information. Consequently
repository of financial

t e r s
plications in the O
the analytical applications
U
Consequently,
Co
racle E-Busine
Oracle
it iis the principal source of information for
E-Business Suite.

In
nces have meanin
Ledger balances meaning. They
specific value in a particu
y assert that the balance on an account at a given date has a
particular currency and is properly calculated. This implies a consistent

c l e
lication of what we
application
Currency, and ac
w sometimes call "the 4 Cs": Chart of Accounts (COA), Calendar,
accounting Convention. The COA provides the account code; Calendar the date

r a accounti period; Currency the transaction currency; and Convention the accounting rules
and accounting
regu
and regulations for the company/country.

O
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Chapter 3 - Page 6
Accounting Setup Manager Overview

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Account Setup Manager Overview

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Central place for defining and maintaining accounting
ng setup for the ffollowing:
ing
• Legal Entities
r a
• Operating Units
O ly
& On
• Ledgers

• Reporting Currencies l
• Primary and Secondary Ledgers

a e
dgers

r
unting
• Subledger Accounting
n s
t e
ntra-company Bal
• Inter- and Intra-company

n U ancing
Balancing
ncing
• Sequencing
ccounting and Reporting
• Accounting
e I Re Sequencing

l
counting Setup Manager Concepts
Accounting
c
r a Ledg
Primary Ledgers
Mai record-keeping ledger
• Main,

O • Defined by 4Cs:

Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 3 - Page 7
- Chart of accounts
- Accounting calendar
- Primary currency
- Subledger Accounting Method
Secondary Ledgers
• Optional, additional accounting representations of your primary ledger
• Can differ in one or more of the following from the primary ledger:
- Chart of accounts
- Accounting calendar
- Primary currency
- Subledger Accounting Method
By assigning two different subledger accounting methods to each ledger, you can use
Subledger Accounting (SLA) rules to simultaneously account for the same legal entity
transaction in both ledgers to meet both fiscal and corporate requirements.

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Chapter 3 - Page 8
Secondary Ledgers

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Secondary Ledgers
Business Reasons
c l
r a
• For global companies that must comply with ith different countries’
coun legal requirements

O ly
• Useful for supplementary purposes, such as consolidation
consolidadation or management reporting

& On
• Provides a complete accounting picture
pictture within itself
tself orr a partial
its partia picture to be grouped with

Benefits l
other ledgers to provide a complete

a e
omplete picture

• More flexibility
r n s
n t e
gal entity(s)
• Represent legal
counting method
- Accounting U
entity(s) accounting
accou
unting inform
informat
information in a different:

e I
Accou
- Chart of Accounts

c l
- Calendar

a
Suble
- Subledger Accounting Method

O r - Maintain at 4 Different Levels

Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 3 - Page 9
Secondary Ledger Conversion Levels

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Secondary Ledger Conversion Levels
Balance Level
c l
r a
• The balance level secondary ledger maintains ledger
ains primary ledg g account balances in another

O ly
accounting representation. This type of secondary ledg
Consolidation to transfer primary ledgerr balances to
ledger requires Oracle General Ledger
dger req
t this secondary
secon ledger.
Journal Level
l & On
n a e
dary ledger maintains
• The journal level secondary
ntation.
accounting representation.
maint
intains
ntains journal
journal entries
ent and balances in an additional

t e r
econdary

U
Every timee you post a journ s
condary ledger is maintained
• This type of secondary maintained usi
journal in the prima
primar
using the General Ledger Posting program.
primary ledger, the same journal can be automatically

I n
ated and maintained
replicated maintain in the secon
at are set up for th
that this behavior.
secondary ledger for those journal sources and categories

l e
ubledger Level
Subledger
c
r a
• The suble
subledger level secondary ledger uses both Subledger Accounting and the General
Ledg Posting program to create the necessary journals in both the primary and
Ledger

O secondary ledgers simultaneously. Subledger Accounting creates the journal entries from
subledger transactions that integrate with Subledger Accounting.
Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 3 - Page 10
• General Ledger Posting creates the journal entries for all other transactions that do not
integrate with Subledger Accounting, including manual journal entries.
Adjustments Only
• Secondary ledger level is an incomplete accounting representation that holds only
adjustments.
• The adjustments can be manual adjustments or automated adjustments from Subledger
Accounting. This type of ledger must share the same chart of accounts, accounting
calendar/period type combination, and currency as the associated primary ledger. To
obtain a complete secondary accounting representation that includes both the transactional
data and the adjustments, use ledger sets to combine the adjustments-only secondary
ledger with the primary ledger when running reports.

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Chapter 3 - Page 11
Reporting Currencies

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Reporting Currencies
Business Reasons
c l
r a
• Useful for consolidation reporting and analysis
alysis

O ly
• No need to physically move balances to create views of consolidation data
o cons

& On
• Beneficial for parent consolidation
ion entities sh the same chart of accounts and
entities that share

Benefits l
calendar with their subsidiaries

a e
ies

dgers
• Tighter link to ledgers
r n s
• For accounting
y))
currency)
t e U
ng and reporting in another curre

n
currency (in addition to the ledger’s primary

• Can

e I
n be used with Pri nd
Primary or Secondary ledgers

c l
r a
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Chapter 3 - Page 12
Reporting Currency (RC) Conversion Levels

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Reporting Currency (RC) Conversion Levels

c l
You can maintain additional currency representations ns at three different levels:
three differe
- Balance level
r a
- Journal level
O ly
& On
- Subledger level

l
• Balance level maintains translated

a e
tored
balances.
nslated balances
ored in a balance
Ledger, balances are stored
s.. Every time yo
balance level reporting
you run translation in General
reporting currency.

r n s
• Journal level, is a currency represesentation of only your GL journals and balances. Every
representation

e
time you post a journal in GL, the journal will be converted to one or more journal level
t
reporting currencies.
n U
e
edger level is a complete
• Subledger
I
ournals entries an
journals
c
and balances.
renc representation of your subledger transactions, GL
currency

c l
Every time you enter
e a subledger transaction or enter and post a journal directly in GL, the

r a
same transact
transaction and journal will be converted to one or more associated subledger level
reporting currencies.

O
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Chapter 3 - Page 13
Accounting Setup Steps

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A c
Accounting Setup Steps
Before you can use Accounting Setup Manager, you
Ledger setup steps. At the very least, you must: c l e
u must complete tthe required General

• Define a chart of accounts


• Define an accounting calendar
• Enable currencies
n l y
Creating an accounting setupup consists
consists of the
O
hee following steps

e
steps:

s
ities.
ties. If you are
• Define Legal Entities. ar not
n integrating w with Oracle subledgers or are defining an
tup that does nott require
accounting setup require a legal entity context, then you can skip this step.
one, one or multiple
• Assign none, multi legal
fine a primary ledger
• Define led
U
gal entities
entitie to an accounting setup.
yin a name, chart of accounts, calendar, currency, and
by specifying
optionally a subl
subledger accounting method.
• Optionally aassign one or more secondary ledgers. Secondary ledgers can differ from the
prima ledger in any or all of the following:
primary
- Chart of accounts
- Calendar

Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 3 - Page 14
- Currency
- Subledger Accounting Method
• Optionally, you can create reporting currencies and assign to the primary and/or the
secondary ledger if you want to maintain multiple currency representations.
• Complete the Accounting Options by specifying the journal processing options and
transaction processing options for the setup components in this accounting setup.
• Mark the accounting setup complete. This will prevent certain changes to your accounting
setup and launch the GL Accounting Setup Program that will make your setup
components ready for data entry.

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Chapter 3 - Page 15
Accounting Setup Manager Create Accounting Setup

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Accounting Setup Manager—Create Accounting Setup
When creating an accounting setup, there are two main steps that each eac have sub-steps. The two

r a
main steps are to create the accounting setup structure
options.
ructure and then tto complete the accounting

Create Accounting Setup Structure O ly re


e

l & On
The first step in creating an accounting structure
unting setup struc
structure is to assign none, one, or multiple legal

a e
entities to an accounting setup.p.

default.
r n
Based on the number of legal entities you

s
ou assign, Accounting Environment Type will
assign, the Acc
Ac

t e U
• If no legal entities are assigned,

n
assig d, then Other defaults. The Other Accounting Environment

I
Type should be used if you are not
dger for consolidation
ledger
e
consolida
ot using
ot usin Oracle subledgers, or if you want a standalone
or management reporting purposes.

cl
• If one legal en
entity is assigned, Exclusive Legal Environment defaults, but can be changed
to Shared legal Environment. You should use the Exclusive Legal Environment if

r a - the legal entity operates in a country where its transactions must be kept separate

O from the transactions of other legal entities

Copyright © Oracle Corporation, 2007. All rights reserved.

Ledger
Chapter 3 - Page 16
- the legal entity is required to use a separate document sequence from other legal
entities
- you plan to use Globalization features specific to that country in which the legal
entity operates
you should also use the Exclusive Legal Environment for a
legal entity that requires its own period close schedule
(i.e. it must close its period at a different time than
other legal entities).
- you want to use the Advanced Global Intercompany System, you must have at least
one legal assigned to the accounting setup
• If more than one legal entity is assigned, then the Shared Legal Environment type defaults
and cannot be changed. You should house multiple legal entities in the same accounting
setup
- if you operate in a country that does not require a separate document sequence for
each legal entity
- All of the legal entities can share the same period close schedule, same primary and
secondary ledgers, and same journal processing options
Select the accounting environment type carefully. You cannot change it once it is defined.
Complete Accounting Options
The second step is to assign a primary ledger and optionally one or more secondary ledgers.
Secondary ledgers can differ in one or more of the following from the primary ledger:
• Chart of accounts
m y
• Accounting calendar
d e
• Currency
• Subledger accounting method
ca
Save the structure.

e A
Complete Accounting Options
c l
Note: You can add secondary ledgers at any time.

r a
After you have saved the structure, you are ready dy to complete ththe accounting options. The

O ly
accounting options page is in a checklist format.rmat. You mustt complete
comp
c all of the required steps.
ending on whethe
Different setup steps are displayed depending her or not
whether not yo
you are using legal entities,

l & Onurrencies.
secondary ledgers, and reporting currencies.
It is strongly advised that you assign balancing ng segment values to legal entities to help you

n a e
ng transaction processing
identify legal entities during processing and rep
re
reporting. You must assign Balancing
Segment Values (BSV)
System.
t e r U s
V) to legal entities
ies if you plan to use the Advanced Global Intercompany

setup.
I n
he required setup steps are comp
After all of the co
complete, you can complete the entire accounting

c le
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Chapter 3 - Page 17
Accounting Calendar

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Accounting Calendar

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Oracle General Ledger allows you to define multiple
lee calendars and aassign a different calendar

calendar for another. r a


to each ledger. For example, you can use a monthly
thly calendar for one ledger, and a weekly
nthly

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Chapter 3 - Page 18
Unlimited Currencies

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Chapter 3 - Page 19
Sharing Ledgers Across Oracle Applications

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Chapter 3 - Page 20
Chart of Accounts

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Chart of Accounts
In Oracle General Ledger, you build a chart of accounts
c l e
Accounting Flexfields.
unts using Accou
Flexible:
• You can design a flexible account structure
ructure
anticipates the way you run your organization in
Multiple Rollups:
n the
t future.
n l y
ets your rreporting needs and
ure that meets

groups.
ccounting
counting information
• You can summarize accounting informa
info mation from mu

e O
multi
multiple perspectives by creating rollup

Ranges:
t e U s
I n acco
• With a well-planned account ructure, you
structure,
ify security and ccross-validation
specify
yo can use ranges to group accounts in reports,
ion rules, define summary accounts and reporting

c e
ierarchies.
hierarchies.
l
r a
O
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Chapter 3 - Page 21
Building the Chart of Accounts Structure

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A c
Building the Chart of Accounts Structure

c l e
• The decisions you make when designing your chart of accoun
Making changes in the future to the structure
accounts are very important.
urre of your chart oof accounts is difficult and not
recommended.

& On l
• Plan carefully to create an account
uture y
ntt structure
structture that m
ture requirem
organization and anticipate future requirement
requirements.nts.
current
meets the cu r needs of your

l
a e
cturee for your ind
• Tailor your account structure ndustry and repor
industry reporting requirements.

r n
• Choose the number of segments, ass w

s
well as the lengt
length, name, and order of each segment.

nt e U
e I
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r a
O
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Chapter 3 - Page 22
Identifying Business Requirements

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Identifying Business Requirements

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If all the detail for an item is contained in one application
cation or a group of tightly integrated

r a
applications, retain the detail in the application itself.
Accounting Flexfield structure for detail that
tself. Do not add extra segments to the
yo ssubledgers. For example, if you
at is tracked in your
O ly
are using Oracle Projects, do not includedee a pr
project segment
oject segm ment in your Accounting Flexfield.
segme

l & On
Conversely, if you capture details in multiple app
Ledger, consider including other her elements, such
applic
lications that all
applications all ppass data to Oracle General
such as product, in the Accounting Flexfield.

na e
t er U s
I n
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Chapter 3 - Page 23
Identifying Segment Requirements

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Identifying Segment Requirements

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Keep each business dimension in a separate segment complicating your processing
nt to avoid com
compli
and reporting.
r a
O ly
Combining location and department into one ne segment m
data for the same department number across locations
y lead tto difficulties when retrieving
may
locationss and restricting certain departments to
a restrictin
specific accounts.

l & On
a e
Avoid having more than one meaning for each ch segment. Havi
Having more than one meaning can

r n
lt the segment, to isolate
make it difficult to default

s
bers to segment values.
assign codes or numbers v
isolate differen
different data for reporting, and to logically
For exam
example, using one generic segment for

roject.
oject.
individual project.
n t e U
ect, and product eelements
subaccount, project, lements
ements make
ma iit impossible to analyze product sales by

Consider

e I
er creating extra ssegments to handle any future reporting requirements that may occur.

c l
onsider
nsider data entry efficiency when ordering your segments.
Consider
Place segments with defaults at the beginning of your Accounting Flexfield, at the end, or both.

ra A
When the Accounting Flexfield window opens, the cursor is placed on the first blank, non-

O default segment. Once users enter all the values for the blank segments, they can press the
defaulted
En key to save their work.
Enter

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Chapter 3 - Page 24
Use alpha characters only in parent account segments. Users can easily enter numerical child
value characters using the ten-key pad when they do not have to shift hand position for alpha
characters.

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Analyzing Reporting Requirements

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Analyzing Reporting Requirements

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Review reports currently produced outside of Oraclee General
General Ledger either in stand-alone

r a
systems or in spreadsheets. Determine if addingg segments to your
structuring your segment values in a certainn way
you Accounting Flexfield, or
way using parent/child
ent/ch hierarchies, allows you to
paren
O ly
generate those reports directly from Oracle Ledger.
acle General Ledg
edger.
dger.

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Creating a Worldwide Chart of Accounts

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Creating a Worldwide Chart of Accounts

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It is important to design a chart of accounts structure
ree that can report effectively to meet

r a
corporate business needs and comply with country
this depends on your organizations needs.
regulations. How you accomplish
ntry specific regul

O ly
• There are two possible approaches: s:
- Assign Account Ranges
l & On
n a e
- Allow Reporting Units to Define Se Segments.

r
Assign Account Rangess

t e U s
• For example, your departmentt segment represents
repres
unts to each
assign a different range of accounts
true cost centers, such as factories. You
eac cost center to maintain detail information by
enter.
cost center.
I n
c l e A
- Factory 1: Assigned accounts 200 to 299
- Factory 2: Assigned accounts 300 to 399

r a Fac
- Factory 3: Assigned accounts 400 to 499

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Chapter 3 - Page 27
Worldwide Chart of Accounts Example

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Worldwide Chart of Accounts Example

c
Allow Reporting Units to Define Segments l
r a
• Establish general criteria for segments, but reporting
utt allow each repo
p unit to define an

O ly
additional segment and values within its own ledger. For
own segment and values in the account
count structure
structure but
F exaexample, each factory creates its
bu does not report detail balance

upon consolidation.
l & On
information for this segment to the parentt company.
commpany. The detail
detai information disappears

- Factory 1:
n a e
ates
tes accounts 100
Designates

t e r
account segment.
subaccount
U s 000 to 999 to represent
repre distribution channels in the

I
actory 2:
- Factory
n
e
Designates accounts 100 to 999 to represent products in the product segment.

c l
Note: This method requires different ledgers for each unique Chart of Accounts.

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Chapter 3 - Page 28
Creating Vertical Structures

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Creating Vertical Structures

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Consider summarizing your data according to your management stru structure.

r a
Create a separate segment for the lowest level in the Accounting Flexfield.

O ly
Strive to use parent rollups within a singlee segment for rep
additional segments in the Accounting g Flexfield.
reporting,
eporting, rather than creating

l & On
ompany reports to Western Regio
For example, a child value of Company Region which reports to European

Western Region as parent


n a e
Division. Only Company is a posting level account
nt of Company
Company and
ac
an Western Div
in the Ac
Accounting Flexfield. Set up
Division as parent of European Region.

flexibility.
t e r U s
organizes frequently,
If your company reorganizes frequen
ently, use
use parent/child
parent/ relationships for maximum

alue
lue can be in multiple
A child value
I n mu nts. It is better to create new parent structures than to
parents.

e
fy
modifyy existing structu
structures because changes can effect historical reporting. For example, if the

c l
Western Region co contained five companies, reported year end results, and then had two more
mov into its child range, then historical reports run after the two additional
companies moved

r a
companies were added would show different results.

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Validation and Value Sets

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Validation and Value Sets

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Use independent validation when the meaning of a value does not de depend on the value of
another segment.
r a
O ly
Use dependent validation when the meaning
(independent) segment. The independent
depends
ng of a value depepends oon the value of another
epends
ue determines the acceptable dependent
ent segment value
segment values.

l & On
a e
Use table validation when thee valid values alre lready
ready exist in a ddatabase table.
already
Points to Consider
r n s
n t e
dating your value
• If you are validating

U
ue set against a no
ator register the table
Administrator ta e withh Oracle
non-Oracle database table, have your System
Oracl Application Object Library.

e I
• The validation type of an existing
• It is strongly recommended
reco
g valu
value set cannot be changed.
that you use independent validation type with Accounting Key

c l segm
Flexfield segments. Parent values cannot be defined for dependent segments. The

r a dependen validation type limits ability to use parent values with MassAllocations,
dependent
Mass
MassBudgeting, and Financial Statement Generator (FSG).

O
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Chapter 3 - Page 30
Using Independent and Dependent Segments

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Using Independent and Dependent Segments
Independent Segments
c l
r a
• For Accounting Key Flexfields, use independentendent
ende nt segments. Do not use the Dependent

O ly
validation type. It complicates parent/child
/child
child hi
values with reporting and mass allocation
es and llimits the ability to use parent
hierarchies
erarchies
location journall entries.
e
Dependent Segments
l & On
segments.
n a e
parate items that
• Dependent segments separate at are closely
closely related
relat into individually identifiable

t e r U s
count is the most
• Account/subaccount m st common use
(account iss the major classification
classif ation and sub
us ffor independent/dependent segments
ssubaccount provides more detail within the
nt).
account).
I n
e
se
• With dependent segments, you must set up each combination of independent/dependent

l
values.
c
r a n need to set up cross-validation rules for independent/ dependent combinations
• You do not
since you set up each combination individually. Sometimes setting up dependent segments

O is preferable to maintaining extensive validation rules for combinations of two segments


which have many values with no ranges or logic for the valid combinations.
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Chapter 3 - Page 31
• Dependent segments limit the values that appear on lists to the dependent values of the
independent segment chosen.

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Designing Size and Numbering Systems

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Designing Size and Numbering Systems
Numeric and Alphanumeric Values
c l
r a
• Numerics are preferable from a data entryy perspective because
beca users can use the ten key

O ly
pad. Sort order is clearer and ranges are
• Alphanumerics may have some logic
re easy to use.
ogic and meaning
mean ng to users. If you do use alphanumeric

l & On ena
nable consistency and ease of sorting and
codes, set up the codes in all uppercase to enable

a e
querying.
• With an alphanumeric
r n
ric coding system,

s
system
em, you can have alpha characters for parent values and
numeric codes for child values;; this
t allows for visually
v distinguishing levels of your
hierarchy.

n t e U
dless of whether you
• Regardless
I
haracter) format ttype.
(character)
e
y use numbers
umber or alphanumeric characters, you must use the char

egment Sizes
Segment
c l
r a
• To make data entry simpler, do not design the segments longer than needed. However,
consi
consider your organization's growth requirements. If your organization currently has 30

O d
departments, but plans to acquire more companies and expand its operations globally, a

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Chapter 3 - Page 33
two character segment size will only accommodate up to 99 different department values.
A three character segment size can accommodate up 999 different department values.
• If you limit segment descriptions to a maximum of 30 characters, your flexfield pop-up
window does not include a horizontal scroll bar.
Coding Schemes
• Consider revising your existing coding schemas. Retaining the old logic of historic
numbering systems often places unnecessary constraints on the Oracle General Ledger and
may create ongoing processing, reporting, and maintenance problems.
• As Oracle General Ledger often uses ranges, make certain that these ranges are broad
enough to create new values in logical sequences.

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Creating Accounting Flexfields

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Chapter 3 - Page 35
Defining Value Sets

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Defining Value Sets

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(N) Setup > Financials > Flexfields > Validation > Sets ets
What is a Value Set?
r a
O ly
• A value set defines the boundaries forr the attributes
flexfield segment. Value sets control
attributes that
ntrol what types of
th you assign to a key or descriptive
o values can be used as Accounting

l & On
Flexfield segment values. Valuealue sets determine
determin
determ
minee the attributes of your segments such as
min

a e
stify, alphanume
length, zero-fill, right-justify, alphanumer
merics,
erics, and value ssecurity. Value sets also control
alphanumerics,

r n
rformed. For exam
how validation is performed.
must be created and used.
s
xample,
ample, w
example, with
ith inde
independent validation, a list of values

t e U
Assigning Valuee Sets to Segments

n
Segment

e I
• Assignn one value set to each Accounting
hare the same value
• Share
countin Flexfield segment.
val sets across multiple ledgers to facilitate consolidation.

c l t same value set more than once within the same Accounting Flexfield
• You can use the

r astructure, as noted in the diagram above, where the same values set is used for the
Balan
Balancing and Intercompany segments.

O
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Chapter 3 - Page 36
How to Define Value Sets
1. Open the Value Sets window.
2. Enter the following:
- Value Set Name
- Description
- List Type
- Security Type
- Format Type
- Maximum Size
- Validation Type
3. Save your work.
Note: Changing the attributes of a value set affects all of the Accounting Flexfield segments
using that value set.

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Chapter 3 - Page 37
Defining the Accounting Flexfield Structure

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How to Define Flexfield Structure
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Defining the Accounting Flexfield Structure

r a
(N) Setup > Financials > Flexfields > Key > Segments
egments

O ly
1. Open the Key Flexfield Segments windowindow
ndow

& On
2. Run a query to find:

l
- Application—Oracle General Ledger

a e
Accounting Flexf
- Flexfield Title—Accounting xfield
Flexfield

r n s
3. Place your in the Title field on any
ny line and selec
select (I) New

t
llowing inform
4. Enter the following

n e U
informati on:
information:
- Code

e
de
I auto
au
- Title will automatically populate

c l
Descripti
- Description

r a - View Name
Sav your work
5. Save

O 6 (B) Segments
6.

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Chapter 3 - Page 38
7. In the Segments Summary window, define the individual segments and the order in which
they appear
8. Place your cursor on line one
9. (B) Open
10. In the Validation Region of the Segments window, place checks in the Required and
Security Enabled checkboxes
11. In the Sizes Region, enter sizes for Display, Description, and Concatenated Description
fields
12. Save your work
13. (B) Flexfield Qualifiers
14. Select Enabled
• Each ledger can have its own Accounting Flexfield structure. Select the appropriate
symbol in the Segment Separator field.
• Choose whether to enable dynamic insertion to allow new account combinations to be
entered. If dynamic insertion is not allowed, account combinations must be defined using
the GL Accounts window.
• Choose to allow cross-validation rules to control the creation of account combinations.
• You can also select to enable the flexfield structure and compile changes made to an
Accounting Flexfield.
• Enter a name, description, column and segment number for each segment. Segment nt
numbers must be sequential for the accounting key flexfield, beginning with 1 (such as 1,
m y
2, 3, …).
• To prevent changes to the Accounting Flexfield structure definition, select the Freeze
d e
Flexfield Definition check box.
ca
Setting Validation Information for Segments
• Assign a value set to each segment.
e A
l
• Always enable the flexfield security check box forr each segment.
c
r a
• Enter a default value from the list of values, or enter another vvalue.
• Select the Required check box and the Displayed checkk bbox box.

O ly egment
gment Display
• Selecting Different Sizes for the Segment

l & On
• Choose the number of characters
description in the Display Size
ers
rs to be displayed
displaye
ze and Descrip
yed for the flexfie
ription
fl
flexfield
iption Size fields
Description fields.
exfie segment value and its

n a e
• In the Concatenated Description Sizee field,
field, choose th
the number of characters to be

ield
t
ch
displayed for each

e r
eld Qualifiers
Assigning Flexfield
U s
h segment value
valuuee description
description that makes up the account combination.

gments:
segments: I n Qualifie window,
• In the Flexfield Qualifiers ow, ass
assign qualifiers to individual accounting key flexfield

c l e
- Natural A
accoun
accou
Account: Each Accounting Flexfield structure must contain only one natural
account segment. When setting up the values, you will indicate the type of account as

r a A
Asset, Liability, Owner's Equity, Revenue, or Expense.

O - Balancing Account: Each structure must contain only one balancing segment. Oracle
General Ledger ensures that all journals balance for each balancing segment.

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Chapter 3 - Page 39
- Cost Center: This segment is required for Oracle Assets. The cost center segment is
used in many Oracle Assets reports and by Oracle Workflow to generate account
numbers. In addition, Oracle Projects and Oracle Purchasing also utilize the cost
center segment.
- Intercompany: General Ledger automatically uses the intercompany segment in the
account code combination to track intercompany transactions within a single ledger.
This segment has the same value set and the same values as the balancing segment.

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Chapter 3 - Page 40
Defining Segment Values

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Defining Segment Values

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Use the Segment Values window to enter values forr each segment yo you create. These are the

r a
values that you use when building your accountt code combinatio
combinations.

O ly
(N) Setup > Financials > Flexfields > Key > Values
Note: Create the segments and accountnt structure ore performing this step.
structure before

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Chapter 3 - Page 41
Populating Segment Value Attributes

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Populating Segment Value Attributes

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As you enter values for a value set in the Segment Values window, yyou also set the attributes
for those values.
r a
O ly
If the value set has the type Translatable Independent
Translated Value field is enabled and users
ndependent orr Translatable
sers can select the
Tra
Translat
th Translation
Dependent, the
Translati icon to update the
Translati

l & On guages.
translated value in all installed languages.

a e
ent value (an account
Select Parent to specify a parent acco
ccount
unt segment vavalue that references a number of
other segment values called

r n
led
ed child values).

s
nd/or level.
rollup group name and/or
). When
When entering parent values, optionally enter a

Enable or disable
t e U
lee values by selec

n
ng the enabled
selecting enab check box or by using the Date From and To

I
fields.

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Chapter 3 - Page 42
Segment Qualifiers

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Segment Qualifiers

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• When you define a segment value, you must also qualifiers for that value to
so assign qualifie

r a
determine the account type, whether budgeting
other information specific to that segment
ting is allowed, whether
eting w posting is allowed, and
m enter segment qualifier
mentt value. You must
O ly
information whenever you define segment valuesvalues for
fo any value
valu set used to create an

l & On
ation.
tion. Segment
Accounting Flexfield combination. Segm qualifiers
You can define the following segment qualifier ers:
qualifiers:
qu vary by segment.

Allow Budgeting:
n a e
t e r U
you cannot assign accounts w s
rform detailed budgeting
• Enter Yes to perform bu
th this segm
with segme
acc
for accounts with this segment value. If set to No,
segment value to budget organizations and you

I n
cannot define budget formulas
ue, you must enter
value,
for
ente No.
or those accounts. If you are defining a parent segment
for

low Posting:
Allow

c l e
• If set to N
No, you cannot use accounts with this segment value to enter journals. If you are

r adefinin a parent segment value, you must enter No because you cannot not post to parent
defining

O ac
accounts.

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Chapter 3 - Page 43
Account Type:
• Defines the account type for the natural account segment value. You can enter only valid
account types. Enter the type of proprietary account (Asset, Liability, Owners' Equity,
Revenue, or Expense) or enter the type of budget account (Budgetary Dr or Budgetary
Cr). For statistical accounts, enter either Asset, Liability, or Owners' Equity. If you choose
an account type of Revenue or Expense for a statistical account segment value, your
statistical balance zeros-out at the end of the fiscal year. The default for this field is
Expense.
To change the Account Type for a value that has not been used, unfreeze all Accounting
Flexfield structures that reference the natural account segment. Changing the account type only
affects new accounts created after this change is made. Note: Please consult Oracle Support
before making a change to a value that has been used or has a balance to prevent problems.
Third Party Control Account:
• Enter Payables, Receivables, or Yes for the Third Party Control Account to designate the
account as a Control Account. Access to this account will be restricted to Oracle Payables,
Receivables, and Inventory, for which Subledger Accounting automatically creates
detailed balances. If you do not specify the account as a control account, you will be able
to use the account for all Oracle Applications.
Reconciliation Flag:
• Enter Yes for Reconciliation Flag to allow reconciliation for natural accounts that should d
balance to zero.
Note: When you define a value as a Parent, you can not budget or post to this value even if you
m y
select the Budget Entry Allowed and Posting Allowed check boxes.

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Chapter 3 - Page 44
Control Accounts

m y

A c
Control Accounts
Control accounts are General Ledger accounts accessed
and Inventory, for which Subledger Accounting c l e
ssed from Oracle Payables, Receivables,
g automatically creates
cr detailed balances.
Control Accounts prevent users from entering unauthorized
ng data from unanautho sources.
Benefits
• Improved Data Integrity
n l y
- Only allow approved ed source

n s
source to post
O
st to an account

e
r
• Streamlined Reconciliation
ciliation

n t e U
betwe
ween source syste
- Enforce consistency between system and GL account balance

e I
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Chapter 3 - Page 45
Control Accounts Setup and Process

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Control Accounts Setup and Process

c l
• When defining your natural account segment values,
alues, you can designate
de an account as a

r a
control account using the qualifier in the segment window.
egment values wi

• SLA and GL will verify that onlyO ly


• You can select the journal source from m which data can
an originate for each control account.
n origin
y data from the specified
sp source can be posted to the
sourc
sour
control account.
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Chapter 3 - Page 46
Defining Hierarchies

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Defining Hierarchies
Child Segment Values
c l
r a
• Post journals and enter budgets directly to o child segment vavalues. Assign ranges of children
to parents.
Parent Segment Values O ly
l & On
nces of associated
• Use parents to sum the balances associ ted
ed child accounts.
accounts Any segment that has
en if that segment
children beneath it - even
a e segm nt hass its own parent
eneral Ledger. You
parent by Oracle General
n Yo cannot post
par above it - is considered a
pos jjournals or enter budgets directly for

t e r U
summationss for running repo s ra
parent segment values. Assign ranges
ts, MassAlloc
reports, Ma ssAlloc
v
of child values
MassAllocations,
to parent values to create
or MassBudgeting.

I n
an create parent ssegment values
• You can
hen used with dependent
when dep
alues for independent segments, but there are limitations
segments. The Dependent validation type limits using parent

c l e
values with Ma
p
MassAllocations, MassBudgeting, and Financial Statement Generator (FSG).
The only parent value available for dependent segments is an all inclusive parent that

ra include all the values of the value set.


includes

O
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Chapter 3 - Page 47
Technical Note:
• Summary accounts may use the segment value 'T' in one or more of the segments,
therefore, define the segment value "T" for every Accounting Flexfield segment if you are
planning to create summary accounts. The value 'T' is also a parent value even though its
children are not specifically assigned. Note: Char must be used as the format type for all
segments of the accounting key flexfields because of the value "T".

n l y
e O
U s

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Chapter 3 - Page 48
Working with Ranges

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Working with Ranges

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• Enter the ranges of child values for each parent. t.

r a
• Specify a range type of Child or Parent.

O ly
• When using the Child type, any child d values that falll within
considered children of the parentt value.
w tthe specified range are

l & On
• When using the Parent type,, any parent valu ues
es that fall withi
values within the specified range are
considered children of the
a e
he parent value.

n
r
Moving Ranges

t e U s
• Move a rangee of child values from
f one parent to another parent value.
one

Viewing
ild
ld moved is also a parent,
• If the child

I
g Hierarchiesn ent,, its chi
ent children are moved automatically.

c l e hierar
• View the hierarchy structure to which the selected value belongs.

r a
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Chapter 3 - Page 49
Account Hierarchies

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Account Hierarchies

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• Use various flexible parent/child account hierarchies your business according to
rchies to view yo

factors you deem important. r a


product lines, geographical regions, organizational nal lines, or any other combination of
zational
zatio

O ly
• Create your hierarchy with as many ny vertical and horizontal
ho levels
lev as you need to

l & On
ness or businesss se
effectively analyze your business
structures than to modify existing structure
ssegment.
gment. It is be
ures because chan
structures ch
better to create new parent
changes can effect historical
reporting.
n a e
t e r U s
Note: Oracle Generall Ledger treats all segment value
as parents even iff they don't have children
va
values that have the Parent check box selected
hildren assigned
assigne and does not allow direct posting or

n
budgeting to these values.
I
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Chapter 3 - Page 50
Account Hierarchy Manager

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Planning Hierarchies

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Plan your hierarchies carefully. When you create and nd save Parent and Child segment values,

r a
they become permanent. You cannot change or delete Parent or C
Account Hierarchy Manager or Oracle General neral
eral Ledger. You
Child segment values using the
ou can only disable them. Disabled
O ly
segment values are displayed in the Account
count Hierarchy y Manager
M aas grayed out.

attributes of many parents and


l & Ones, creating num
If you are creating large hierarchies, numer
merous parents
numerous parents and children, or managing the
d children, you can use a spreadsh
spreadsheet template as a planning aid.

n a e
emplate after thee grid
Model your spreadsheet template g d format in th
the Attributes window. Enter the

t e r s
appropriate data in thee cells. You can
archy Manager. You
the Account Hierarchy
U
n use
u your templat
Y can copy an
tem
template to guide you when making changes in
and paste entries from your template into the

n
ndow, one field at a time
Attributes window, me for the Value, Description, From, and To fields. The
mat
date format
I
at you enter in yo

e
your template mu
must follow the MM–DD–YYYY format.

c l
r a
O
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Chapter 3 - Page 51
Account Hierarchy Manager—Security

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Account Hierarchy Manager—Security
(N) Setup > Accounts > Manager
c l
r a
The Account Hierarchy Manager has security rules that work ttogether. You can control read

accounts. O ly
only or read/write access and control accessss to hierarchies, segment values, and charts of
s,, segme

l & On
• Read Only, Read/Write Security urity
- Read Only – Disables
and parameters.
n a e
bles
les you from modifying
mod
odifying or savin
s.. You can only query,
q
saving hierarchies or segment values
hier
view hierarchy, view details, and export to a tab

ger.
er.
Manager.
t e r U s
delimited files. Read Onlyy is
i displayed in the
th title bar of the Account Hierarchy

I n
ead/Write Securi
- Read/Write Security – Givess you read/write access to all segment values in the Chart
S
of Accounts. Segment Value Security may limit the segment values you can access.

c l e
• Segment Value
value or ra
Valu Security—An Oracle Applications feature that lets you exclude a segment
ranges of segment values for a specific user responsibility. Segment Value

r a Securi is extended to the Account Hierarchy Manager.


Security

O
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Chapter 3 - Page 52
• Chart of Accounts Security—You have access to those charts of accounts associated with
your user responsibility. If you need access to charts of accounts not available to you, see
your system administrator.

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Chapter 3 - Page 53
Defining an Accounting Calendar

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Defining an Accounting Calendar
Account Calendar Considerations
c l
r a
• Define at least one year at a time. By settingng up your period
periods in advance, you can reduce

O ly
the amount of period maintenance at the
• Foreign currency translations cannot
he start of each
nnot be performed
perfforme
med
aaccounting period.
h accoun
initial period opened for your
ed in the initia
ledger.
l & On
n
od carefully. Afte
• Choose the earliest period
a e
pened.
periods cannot be opened.
fter you open the first accounting period, prior
After

t e r U s
mber of periods you
• Set up the number
• When thee next accounting period
yo want to budget
od is opene
budg for, up to a maximum of 60 periods.
opened, Oracle General Ledger rolls account balances

I n
ard to that period.
forward

c l e
Finan
Acc
How to Define an Accounting
(N) Setup > Financials
Calendar
> Calendar > Accounting

r a th Accounting Calendar window


• Open the
En the following information:
• Enter
O - Calendar: Accounting Demo

Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 3 - Page 54
- Description: Standard Calendar
• Enter the following information to add the periods that make up the calendar year:
Prefix Type Year Quarter Num From To Name
Jan Month 2003 1 1 01-JAN-2003 31-JAN-2003 Jan-03
Feb Month 2003 1 2 01-FEB-2003 28-FEB-2003 Feb-03
• Notice the Adjustment box to designate an adjusting period.
• Save your work
• Close the Accounting Calendar window. A decision window appears whenever you close
the Accounting Calendar window after creating or editing a calendar. Select the Current
button to validate the calendar you just created.
• (B) OK
• Find your request in the Requests window and select the View Output button to find out if
there were any errors in the calendar you just created
• The Calendar Validation Report identifies if there are missing periods for this calendar

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Chapter 3 - Page 55
Defining Period Types

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Defining Period Types

c l
Oracle General Ledger uses the year type to determineine the year to as
assign to a period name in

r a
the accounting period system. When defining newew period types:

name. O ly
• Choose Calendar to use the year in which
hich an accounting
ing period
accountin per begins for the period

l & On
• Choose Fiscal to use the yearr in which yourr fiscal
fi year ends ffor the period name.

n a e
t e r U s
I n
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Chapter 3 - Page 56
Defining Your First Accounting Period

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Defining Your First Accounting Period

c l
When you define a new ledger, choose carefully thee first accounting period you want to open.

prior accounting periods. r a


Once you open your first accounting period, Oracle acle General Ledger
racle Le
Led does not allow you to open

O ly
Choosing whether to include an adjustingting
ing period or not calendar is a very important
ot in your cale

l & On
decision. You can have an unlimited
ting
ed
d number of adjusting
adj
ad
ing period to perform
fiscal year is used as an adjusting perf
ddjusting
justing periods. Typically, the last day of the
perform adjusting aand closing journal entries. Once
a e
ounting
unting calendar,
you begin using your accounting
n
r, you cannot cha
change its structure to remove or add an
adjusting period.

t e r U s
I n
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r a
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Chapter 3 - Page 57
Accounting Period Statuses

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Accounting Period Statuses
Never Opened:
c l
r
• You cannot enter or post journals.
a
Future Enterable:
O ly
& On
• You can enter journals, but you cannot post. The future enterable periods is a
The number of fu

Enterable periods at any l


fixed number defined in the Ledger window.

a e
y time.
change the number of Future
w. You can chang

Open:
r n s
n t e
• You can enterr and post journal
U
be open, but doing so may slow
ls to any open pperiod. An unlimited number of periods can
journals
w the posting
postin process and can confuse users entering

d:
Closed:
als.
journals.

e I
c l re
• You must reopen Closed periods before you can post journals. You should manually close

r a a
periods after finishing your month-end processing.

O
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Chapter 3 - Page 58
Permanently Closed:
• Permanently Closed periods cannot be reopened. This status is required to archive and
purge data.

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Chapter 3 - Page 59
Calendar Auditing

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Calendar Auditing

c l
Oracle General Ledger can automatically audit yourr accounting calendars
cale to check for

r a
common setup errors. This feature strengthens controls during im
potential processing problems related to invalid
implementation and prevents
definitions.
alid calendar def
efinit
finiti
O ly
When you use the Accounting Calendar enter
nter periods, tthe system only performs
ar window to ente

l & On
online checking of errors such as the
he wrong num
nonadjusting periods that havee overlapping day
number
ays.
days.
ber of days
days assigned
assign to a period or

When you exit the Calendar


n a e
dar window, thee Calendar
C Auditi
Auditing program automatically produces a

t e r
tlines calendar definition
report that clearly outlines

U s
iods, and nonsequ
nonadjusting periods,
dde violatio such as date omissions, overlapping
violations
ential periods.
nonsequential
The Calendar
I n
ar Validation repo
the GL calendar definitio
report printss the error
err description, years, periods, or dates that violate
definition when you create a calendar or add accounting periods to your

l e
ndar.
calendar.

c
Use the Calenda
Calendar Validation Report to identify errors in your calendar that may interfere with

O ra
the proper ooperation of Oracle General Ledger.

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Chapter 3 - Page 60
Enabling Currencies

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Enabling Currencies
(N) Setup > Currencies > Define
c l
r a
1. To Enable or Disable a Currency, open thee Currencies windwindow.

O ly
2. In the currencies window, query all existing
existi ng records by
xisting b using the CTRL + F11 keys.

& On
3. Select any existing currency thatt has not been en
enabled. Scroll tto the right and select the
nabled. Scroll

4. Save your work. l


Enabled check box to enablee the currency.

a e
r n s
n t e U
e I
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Chapter 3 - Page 61
Enabling Account Combinations

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Enabling Account Combinations

c l
The default setting for an account code combination is enabled. Once created, an account code

r a
combination cannot be deleted. To discontinue using an accoun
deselect the Enabled check box for the account.unt. You can
account code combination, simply
n also use the effective date to enable or
so us
O ly
disable the combination. For example, if you have
have a new department as of January 1, 2002, you
ew departme

combination becomes enabled on


l & Onation
can create an account code combinationtion with an effective
n that date. This
effe
fective date of 001-JAN-2002 and the account
is means you hav
have the flexibility to create the

n a e
vance.
account combinations in advance.

• Preserved
t e r
Additionally, you can control

U s
ntrol the follow
owing attributes from the GL Accounts window:
following

• Type
I
fective Dates
• Effective n
l e
• Allow Posting
c
r a Bu
• Allow Budgeting

O
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Chapter 3 - Page 62
Segment Value Inheritance

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Segment Value Inheritance
Overview of Segment Value Inheritance
c l
r a
• Oracle General Ledger eases chart of accountsounts maintenance by automatically replicating

O ly
changes to segment value attributes off the account cod
segment value. For example, if you
code
particular
ou enable a partic
pa rticu
combinations that contain that
de com
center segment value that had
icular cost cen
been disabled previously, you
account code combinations
l & On
u can run the Segm
ns containing that
hat
gment
gm
Segment
at cost
ent Value Inhe
Inheritance program so that all
cost center are automatically re-enabled. You

n a e
cted account code
can also prevent selected de combinations
combinations ffrom being affected by segment

ent
Using the Segment
t e r
hanges
anges by selecting
value attribute changes

U s
selectin
nt Value Inherita
ting
ing the Pr
nce Program
Inheritance
eserved check box in the GL Accounts window.
Preserved

I n
• To use the Segment ValuValue Inheritance
disab a segment or change other attributes in the Segment Values
di
- Enable or disable
itance pprogram:

c l e
window.
- Run tthe Segment Value Inheritance program to change the attributes on all account

r a co combinations that contain the segment.


code

O - Use the Segment Value Inheritance Exception Report to view the account code
combinations that have been changed.
Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 3 - Page 63
• Individual segment value attributes override account code combination attributes. To
protect account code combinations from changes when you run the Segment Value
Inheritance program, select the Preserved check box in the GL Accounts window.
• An account code combination is composed of several segment values. If these segment
values have conflicting settings with respect to being enabled, posting, budgeting, and
effective dates, the most restrictive of these settings for any of the individual segment
values applies to the account code combination when the program is run. If you disable a
segment value, the code combinations that contain that value will no longer be able to
used, even if the preserved check box is selected.
Note: You can also disable an account code combination in the GL Accounts window.
However, you must select or deselect the Enabled check box for each account combination
individually. This applies to other attributes such as budgeting and posting as well.

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Chapter 3 - Page 64
Troubleshooting Segment Value Inheritance

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d em
c a
e A
Troubleshooting Segment Value Inheritance
Accounting Flexfield Structure:
c l
r a
• If you want to update another Accounting Flexfield structustructure, you must use the

O ly
responsibility for that structure. If you
responsibility defined for each ledger.
dger. The segment
The segmen
ledgers, you must have at least one
u have multiple ledgers
le
inheritance program only
ent value inhe

l & On
updates one ledger, which is the he one assignedd to
t the responsibility
responsib
edgers need to be updated, you m
the program. If multiple ledgers
of the user launching
must launch the program multiple
times, each time from
n a e
m a different respoponsibility.
responsibility.
Table Validation:

t e r s
ment Value Inheritance
• If the Segment
U
Inherit nce program isi run for a chart of accounts that contains a

ust
must
I
alidated value set,
table validated
n sset the columns
umns
mns LAST_UPDATE_DATE
st be in the table used by the table
L and CREATION_DATE
b validated value set. If the table does not have these

c l e
columns, then the
values attrib
th Segment Value Inheritance program cannot determine which segment
attributes have changed since its last run and assumes that no segment value has

r achanged in this value set.


Th Segment Value Inheritance program prints a warning message in the report.
• The
O
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Chapter 3 - Page 65
• The program continues the inheritance process for other segments and generates a warning
when the program is completed.
Segment Value Inheritance and Flexfield Security
• Segment value inheritance and flexfield security are different and unrelated.
• You can use flexfield security to enable specific users to use a segment value and block
other users from using the same value.
• Segment value inheritance finds code combinations using a segment value and transfers
the segment value attributes to the code combinations.

m y
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Chapter 3 - Page 66
Defining Flexfield Security Rules

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Defining Flexfield Security Rules

c l
• To prohibit certain users from accessing specific values, you can define flexfield
ic segment values

r a
security rules and assign those rules to the responsibility off the restricted users. For
example, you can create a security rulee that grants a use
user access only to his or her own
ser acc
department.
O ly
• Accounting Flexfield segment

l & On
ntt values must pas
re the value can be
user's responsibility before
ass every
pass every assigned
assigne flexfield security rule for a
b selected by ththe user.
How to Define Security Rules
n a e
1. In the Find
als > Flexfields > Validation > Security
(N) Setup > Financials

t e r U
d Key Flexfield Ss ment window
Segment
S
window, enter:
> Define

- Title
I n Accountingng Fl
Flexfield

c l e
Segmen
- Segment
D
- Structure Demo Accounting Flex
Company

r a
2. Select tthe Find button.
En the parameters for the security rule.
3. Enter
O 4 In the Security Rules region:
4.

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Chapter 3 - Page 67
- Name Demo FFS
- Description Company Not Valid for Responsibility
- Message Demo FFS – Company not valid for responsibility
5. In the Security Rules Elements region:
- Include 00 – 99
- Exclude 00 - 00
6. Save your work.
7. Select the Assign button and assign the rule to:
- Application Oracle General Ledger
- Responsibility Demo Vision Operations, USA
- Name Demo FFS
8. Save your work.

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Chapter 3 - Page 68
Using Dynamic Insertion

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Using Dynamic Insertion

c
Setting the Allow Dynamic Inserts Option l
r a
• You have the option of allowing account combinations
combinations to bbe added automatically as you

O ly
enter them in transactions, including when you definee a ledg
by the Allow Dynamic Inserts check eck box located
ledger. This option is controlled
located oon the Key FFlexfield Segments window.

Combinations window.
l & On
lll accounts to bee define manually in the Accounts
Alternately, you can require all

• Frequently, companies
n
ies
a e
es enable dynam mic insertion whi
dynamic while they are entering historical data
ystem.
stem. They then
from a legacy system.
r
ew account com
creation of new
t e U s
comb
n disable the featu
inations.
combinations.
feature to ensure tighter control over the

Note: If you
I n
u are defining an Accounting
segmentt with the Allow D
A ing Flex
Dynamic Inserts
Flexfield for Oracle Projects, you must define your
t option set to Yes. For more information, refer to the

l
acle
Oracle

c e
cle Projects User Guide.

ra
O
Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 3 - Page 69
Defining Cross-Validation Rules

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Defining Cross-Validation Rules

c l
Cross-validation controls the combinations of values ess you can create when
w you are setting up

r a
Accounting Flexfield combinations. A cross-validation
particular segment can be combined with specific
defines whether a value of a
idation rule defin
de
pecific values off other
o segments. Cross-validation is
O ly
different from segment validation, which ch controls
controls the vavalues you ccan enter for a particular
segment.

l & On
You use cross-validation rules to prevent the crcreation of com
comb
combinations that should never exist

n a e
(combinations with valuess that should nott coexist
coex
c ist in the sa same combination). For example, you

r
event
vent the combination
can assign rules to prevent
s
combina
vising Cross-Vali
Defining and Revising
t e
Cr
U
nation off a product
oss-Validation Rules
Cross-Validation
produ with administrative departments.

I n
• Becausee cross-validation rules validate
m prior to entering
them enterin accounts.
alidate only new accounts, you should define and enable

cl e
• Revise cross-va
cross-validation rules at any time, but remember that they only prevent the creation
inva account combinations.
of new invalid

r a
Combinati
Combinations of Segment Values

O N accounts must pass every enabled cross-validation rule to be valid.


• New

Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 3 - Page 70
• Cross-validation rules do not affect existing accounts.
• Using Cross-Validation with Dynamic Insertion
• Enable dynamic insertion in the Key Flexfield Segments window to allow users to define
new account combinations of segment values.
• If dynamic insertion is not enabled, you can only enter new account combinations of
segment values using the GL Accounts window.
• Cross validation rules are important even if dynamic insertion is not enabled to prevent
creating invalid combinations accidentally.
Specifying Cross-Validation Rules
• To enter cross validation rules, navigate to the Cross Validation Rules window.
(N) Setup > Financials > Flexfields > Key > Rules
• Enter the error message that should be displayed if the rule is violated. Include the name
of the rule in the error message for easy identification.
• Enter the name of the segment most likely to cause this cross-validation rule to fail; Oracle
General Ledger moves the cursor to this segment whenever a new account combination
violates this cross-validation rule.
Defining Cross-Validation Rule Elements
• Select Include or Exclude and specify a range of accounts for each rule.
• Oracle General Ledger excludes all accounts that are not explicitly included.
• Exclude rule elements always override Include rule elements. Therefore, create a universal
Include statement that includes all possible accounts. Then specify Exclude statements.
m y
tatements.
• Note: Defining many rules with few elements is generally much clearer than defining few
d e
a
rules with many elements. For clarity, always contain one universal Include nclude element aand
one or more restricting Exclude elements.
Note: To help you maintain your cross-validation rules, have your
following reports to your General Ledger responsibility:
our
ur system admini
admi
A c
administrator add the

c l e
• Cross-Validation Rule Violation Report: This report ort provides a listing
list
lis of all the

a
cros
previously-created flexfield combinations that violate your cross-validation rules. You can

violate your new rules. r


O ly
tually
tua
also choose to have the report program actually

• Cross-Validation Rules Listing Report: This report


lly disable the existing combinations that

repo
port
rt lists all the cross-validation rules that

l & On
d structure. Thiss iis the informatio
exist for a particular flexfield information you define using the

a e
Define Cross-Validation Rules form, pres esented in a mu
presented mult
multiple-rule format you can review

r n
cords for a given
and keep for your records

s
en
n flexfield structu
structure.

n t e U
e I
c l
r a
O
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Chapter 3 - Page 71
Defining Shorthand Aliases

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Defining Shorthand Aliases
Defining Aliases to Represent Accounts
c l
r a
• An alias can represent the value for a singlele segment, several
gle sever segments or an entire
account combination.
O ly
• You can define an unlimited number ber of aliases too represent com
mber complete or partial accounts.
How to Create Aliases
l & On
n a e
exfields > Key > Aliases
(N) Setup > Financials > Flexfields

nts.
chart of accounts.
t e r U s
1. In the Shorthand Aliases window, w, use
u the Find icoicon to find the Demo Accounting Flex

I n
plication
lication
- Application
- Flexfield Title
Or
Oracle General L
AccountinggF
Ledger
Flexfield

c l e
- Structure
E
2. Select the Enabled
DEMO ACCOUNTING FLEX
checkbox.

r a
3. In the Max Alias Size field, enter 4.

O I the Prompt field, enter Alias.


4. In

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Chapter 3 - Page 72
5. In the Aliases, Description tabbed region, enter:
- Alias Cash
- Template 01.100.1000
- Description Cash account for Cost Center 100
6. Save your work
7. Open the Key Flexfield Segments window.
(N) > Setup > Financials > Flexfields > Key > Segments
8. Use the Find icon to locate:
- Application Oracle General Ledger
- Flexfield Title Accounting Flexfield
9. From the Structures list, select Demo Accounting Flex.
10. Clear the Freeze Flexfield Definition check box. Select OK when the message box
appears.
11. Select the Freeze Flexfield Definition check box and select OK when the message box
appears.
12. Save your work.
Important Notes:
• You cannot define a shorthand alias using invalid values.
• There is no validation process or checking of cross-validation rules when you define
shorthand aliases.
ne

m y
• After you define the first shorthand alias, you must unfreeze your flexfield
it in order to be able to use your newly defined shorthand alias. This step
d
tep is performed e
d and recompile

only once.
• The Flexfields: Shorthand Entry Profile Option must be set to
ca
o Yes before you can use your
shorthand aliases. This profile option can be set by the user

e
ser or system adm
A
administrator.

c l
• Caution: Do not define shorthand aliases for a small number of accou
• Entering Aliases When Entering Accounts
accounts. It is inefficient.

r a
• When you invoke the account list of values es window, the shshorthand window is displayed.

Accounting Flexfield window. O ly


• You can enter a partial shorthand alias as orr skip the sho
horthand window to open the
shorthand

l & On
as,
• After you enter a partial alias,s, the Accounting
Accountin ing Flexfield win
window displays the segment
values represented by the

n a e
he alias. Change
Cha e aany segment va values if desired.

values and moveove

t e r s
represen
represen
ve you to the nex

U
ented an entire accounting
• If you entered an alias that represented
ext field in the wi
next
ac
window.
combination, it fills in the

I n
c l e
r a
O
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Chapter 3 - Page 73
Overview of Account Hierarchy Manager

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Overview of Account Hierarchy Manager

c l
With the Account Hierarchy Manager you can:

r a
• Graphically create, maintain, and review account
ccount structure
struct hierarchies

O ly
• Define new parent and child segmentt values, as welll aas chan
change parent/child dependencies

& On
• Create new rollup groups from the Account Hierarchy
Hierarchy Manager
Hier Manage and have your changes

Planning Hierarchies l
reflected automatically in both

a e
oth the Key Segm
Segment
gment Values and Rollup Groups windows

r n s
Plan your hierarchies carefully. When n you
y create and ssave Parent and Child segment values,

e
manent.
anent. You canno
they become permanent. ot change or del
cannot
archy Manager or Oracle
Account Hierarchy
n t U cle Genera
delete Parent or Child segment values using the
General Ledger. You can only disable them. Disabled

If you
e
alues are displayed
segment values
I displaye in the Account
u are creating larg
ccou Hierarchy Manager as grayed out.
large hierarchies, creating numerous parents and children, or managing the

c l
ttributes of ma
attributes many parents and children, you can use a spreadsheet template as a planning aid.

r a
Model your sp spreadsheet template after the grid format in the Attributes window. Enter the
appropriat data in the cells. You can use your template to guide you when making changes in
appropriate

O the Ac
Account Hierarchy Manager. You can copy and paste entries from your template into the

Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 3 - Page 74
Attributes window, one field at a time for the Value, Description, From, and To fields. The
date format you enter in your template must follow the MM–DD–YYYY format.

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Chapter 3 - Page 75
Integrating with Oracle General Ledger

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Integrating with Oracle General Ledger

c l
Account Hierarchy Manager is fully integrated with h Oracle General L Ledger. You can create

r a
and manage values and hierarchies for your Accounting
Hierarchy Manager just as you can in General
counting Flexfields
Flexfiel using the Account
changes made in Account Hierarchy
ral Ledger. All chang
ch
O ly
Manager are reflected in GL upon saving re chart of accounts is available in
ng and yourr entire

l & On
Account Hierarchy Manager. Working king with account
Hierarchy Manager is easy andd intuitive because
acco nt structures and hierarchies in Account
becauuse of the graphical
graphic interface. In addition,

n a e
ulations for account
performing what-if manipulations accou
ount structures is a simple process using the Account
Hierarchy Manager.
You can use Account
e r s
ount Hierarchy Manager
t U
Manager in conju
cconjunction with GL. First, set up the basic

n
ework in General Ledger
account framework er by defin
defining value sets, the account structure, segment

e I
qualifiers,, and the order of the segments.
valuess and relationship
nts. Then
T use the Account Hierarchy Manager to add
relationships. You will find setting up your chart of accounts to be more efficient

c
his way.
this
l
r a
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Chapter 3 - Page 76
Using the Account Hierarchy Toolbar

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Using the Account Hierarchy Toolbar
Building a Hierarchy
c l
r a
To build a hierarchy, select a parent value from thehe Values List w window and choose the View

Hierarchy window. O ly
Hierarchy button from the toolbar. The parent nt value and all its children are displayed in the
it chil

l & On
elect additional values
To continue building a hierarchy, select v from the V Values List window, then

a e
archy window. Any
drag and drop them in the Hierarchy A new values m must be added to existing parent

Hierarchy window, then


r n
ndow.
dow. For example,
values in the hierarchy window.

s
exampl
n drop it onto any
ple, you can select
any parent value. Y
selec a child value, drag it to the
You can also select a parent value, drag it

t e U
indow, and drop
to the Hierarchy window,

n
dr itt on any parent value.

I
However, therere are instances when
w u cannot drop a selected value onto an existing value in the
you
exa
hierarchy diagram. For example, you cannot drop a child value onto another child value. The

cl e
unt Hierarchy Ma
Account
stances.
instances.
Manager will prevent you from completing the drag and drop in these

r a
To remove a value
menu.
v from a hierarchy, select it and choose Remove from the right-click mouse

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Chapter 3 - Page 77
Account Hierarchy Manager Segment Symbols

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Account Hierarchy Manager Segment Symbols

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Displaying Segment Values and Hierarchies

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The Account Hierarchy Manager interface consists
nssists of multiple windows
w to help you find,
manage, and create hierarchies.
O ly
Chart of Accounts - Segments Window dow

l
The Chart of Accounts - Segments
& On
nts window lists the
th Chart of Accounts
Acc you can access subject

n a e
to Chart of Accounts Security.ty.

r
Displaying Parents and Children
Children in a Gra Hierarchy
Graphical Hierarch
Hierarc

ent, e
nt, Account, etc.
Department,
U s
1. Expand any Chart of Accountss folder to view the individual segments, such as Company,
t
hlight a specific se
2. Highlight
I n segment and cho
choose Find in the Query Values window.

c l e
The window chachanges to the Values List window and displays all the Parent and Child
tha segment.
values for that

r a Highligh any parent value and choose the View Hierarchy button. The Hierarchy window
3. Highlight
appe
appears. Parent and Child values are displayed in a graphical hierarchy.

O
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Chapter 3 - Page 78
Query Values Window
Enter search criteria in the Query Values window to search for existing segment values. Values
you can access are subject to Segment Value Security. Criteria entered in the Parent and Child
tabs work together in your search. The Parent and Child tabs have Values, Status, and Dates
tabs to help you limit your query. You can sort the results of your search by Value or
Description.
Values List Window
Expand a Chart of Accounts, select a Segment and choose Find in the Query Values window.
The Account Hierarchy Manager displays 100 segment values at a time in the Values Detail
window. You can select arrows to scroll through the list.
Values Detail Window
The Account Hierarchy Manager displays your hierarchies and attributes in two windows—
Account Values Detail window and Hierarchy window. The title of the Values Detail window
is dynamic to reflect the segment you are working with. For example, if you highlight a parent
value for the account segment in the Account Values window and choose the View Hierarchy
button from the toolbar, the parent and its children appear in the Hierarchy and Attributes sub
windows of the Account Values Detail window. The displayed title of the Values Detail
window, in this example, is Account Values Detail. The Hierarchy window displays your
hierarchies graphically. From a Hierarchy window, you can build, modify, and view account
hierarchies. The Attributes window lists the attributes of segment values displayed in the
Hierarchy window. Attributes are: Description, Rollup Group, Account Type, Effective Date
Ranges, Enabled, Budgeting Allowed, and Posting Allowed.
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Chapter 3 - Page 79
Parent Levels in an Account Hierarchy

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Parent Levels in Account Hierarchy

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As illustrated in the diagram, a parent value can be a child of a highehigher level parent. For

r a
example, in the diagram, parent value 3110 has two child segm
parent is itself a child of the higher level parent
rent value 3100,
arent
segment values, 3111 and 3115. The
segmen
0, which
whi also includes the child
O ly
values 3150 and 3160. Parent value 3100 00 is, in turn, ch of the topmost parent value, 3000,
turn, a child

values.
l & On
which also includes the lower level parent va values
lues 32
3200
200 and 3300, aas well as all of their child

n a e
When you select a parent level in the Accou count
ount Hierarchy M
Account Manager, you are selecting the parent

e r s
segment value plus alll of its child values,
alues. For exam
associated child values.
t
examp
value
example,
U
lues,
ues, which includ
le, if you se
include lower level parents and their
lect the parent value 3300 from the hierarchy
select

n
shown in the diagram, you are selectingting the va
values 3300, 3310, 3311, 3315, and 3350.

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Chapter 3 - Page 80
Creating New Child Values

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Creating New Child Values

c l
Use the Account Hierarchy Manager to define a new w segment value bby entering attributes for a

set. r a
new child value. The new value must comply with format of the segment's value
ith the defined fo

O ly
To create a new child segment value for hierarchy,
or your hierarchy
hy, from the CChart of Accounts -

want to work with. Choose Find


l & On
Segments window select the Chartt of Accounts
Account and nd Segment for th
nd in the Query Values
V
the existing hierarchy you
window, and choose New Child from the

n a e
ributes
ibutes window appears.
Edit menu. The Child Attributes ap In the C
Child Attributes window, enter a new

w.
Attributes window.
t e r U s
Hierarch
Segment Value. The Account Hierarchy chy Manager validates
vali the value when you close the Child

I n
eate and save a new
Once you create ne childd segm
segmen
time uncheck thee Enable
tim
segment value at any time,
segment value, you cannot delete it. To disable the
E check box in the Child Attributes window.

c le
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Chapter 3 - Page 81
Ledger Sets

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Ledger Sets

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Ledger Sets enable you to group multiple ledgers that same COA and calendar
at share the sam

r a
combination. Essentially, Ledger Sets allow you u to treat multiple ledgers as one. For example,
you can open and close periods for multiplee ledger ledger
dger set
ledgerss in a led
ledg s in a single submission by
O ly
submitting the new Open and Close Periods
riods programs fr from the Submit
Su Request form.

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Chapter 3 - Page 82
Data Access Sets

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Data Access Sets

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Data Access Sets enable you to specify read only orr read and write aaccess for a legal entity,

r a
ledger, balancing segment value or managementntt segment value.

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Chapter 3 - Page 83
Summary

m y

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Chapter 3 - Page 84
Summary

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Chapter 3 - Page 85
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Chapter 3 - Page 86
Basic Journal Entries

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Chapter 4

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a d
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Basic Journal Entries


Chapter 4 - Page 1
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Chapter 4 - Page 2
Basic Journal Entries

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Chapter 4 - Page 3
Objectives

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Chapter 4 - Page 4
Objectives

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Chapter 4 - Page 5
Objectives

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Basic Journal Entries


Chapter 4 - Page 6
Journal Entries and the Accounting Cycle

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Journal Entries and the Accounting Cycle

c l
Journal entries are an integral part of the accounting
g cycle:
• Open period
r a
O ly
• Create functional and foreign journall entries.

& On
• Reverse journal entries
• Post
lances
• Review and correct balances l
a e
r n
• Revalue foreign currency balance
s
ces
balances
oreign
reign currency ba
• Translate foreign

n t e Uances
balances

eview
lidate
idate ledgers
• Consolidate
view and correct
• Review
e I
correc balances

c l accountin reports
• Run accounting

r a
• Close the accounting period

O
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Basic Journal Entries


Chapter 4 - Page 7
Integrating Journal Entries in Oracle eBusiness

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Integrating Journal Entries in Oracle eBusiness

c l
Journal entries transfer accounting transactions to Genera
Generall Ledger fo for reporting and analysis.

r a
You can integrate the following subledgers with h Oracle General Ledger:

O ly
• Purchasing: Accrual of receipts not invoiced,
• Payables: Invoices, payments, realized
voiced, purchase
nvoiced,
alized gain
se orders,
order final close cancellations
lo invoice pprice variance
gain and loss,

l & On
ons,
• Assets: Capital asset additions,ns, cost adjustments,
adjustme
adjustm ments, transfers,
transfers, rretirements, depreciation,

n a e
onstruction in pro
reclassifications, also construction rocess
process

r
• Work In Process: Material issues orr backflush
backflush to WWIP, completions, returns, resource and

• Inventory:
actions, cost updates
overhead transactions,

t e U s
upddates
y:: Inventory, cost of goods
oods sold (COGS),
( cycle count and physical inventory

I n
tments, receiving transactions,
adjustments, ns, ddelivery transactions, intercompany transfers, sales

e
rder issues, internal
order intern requisitions, subinventory transfers

c l Cos distribution of labor and non-labor, revenue


• Projects: Cost

r a Receivab
• Receivables:
char
chargebacks,
Invoices, payments, adjustments, debit memos, credit memos, cash,
realized gain and loss

O • Payroll: Salary, deductions and taxes

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Basic Journal Entries


Chapter 4 - Page 8
Performing Journal Entry Functions

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Performing Journal Entry Functions

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Using Oracle General Ledger, Oracle subledgers, andnd Oracle Web AADI, you can perform the
following journal entry functions:
r a
spreadsheet. O ly
• Create journal entries in Oracle General see Web ADI to enter journals from a
ral Ledger or use

• Import journal entries


l & On
• Post journal entries

n a e
r
• Inquire on accountt information
information and
nd
d journal entries
• Drill down to subledgers
t e U s
orts
• Run reports
n
verse journal entries
• Reverse
I
entri

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Basic Journal Entries


Chapter 4 - Page 9
Journal Entry Types

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Journal Entry Types

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Within Oracle General Ledger, you can work with the types of journal entries:
he following type

r a
• Manual Journal Entries: The basic journal entry type is use used for most accounting

• Reversing Journal Entries: ReversingO ly


transactions. Examples include adjustments reclassifications.
ments and reclass
entries
rsing journal entri
assificat
created by reversing an existing
tries are create
& On
se any
journal entry. You can reverse any journal entry
l
ent
ntry and post it to the current or any future

a e
open accounting period.

quent
r n
• Recurring Journal Entries: Recurring
uent accounting
for each subsequent
s
ng journal entries
g period
p
en
you gene
are defined once, then are repeated
generate. You can use recurring journal entries

n t e
utomatic consolid
to define automatic
U
ing and elim
consolidating elimin
eliminating entries. Examples include intercompany

I
ad debt expense, aand periodic
debt, bad odic ac
accruals.
assAllocations: MassAllocations
• MassAllocations: M are journal entries that utilize a single journal entry

c l e alloc balances across a group of cost centers, departments, divisions or other


formula to allocate
E
segments. Examples include rent expense allocated by headcount or administrative costs

r a
allocate by machine labor hours.
allocated

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Basic Journal Entries


Chapter 4 - Page 10
Journal Creation Methods

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Journal Creation Methods
Manual Journal Entries
c l
r a
• Organization Need: Create adjusting journal. nal.

O ly
• Procedure: Enter debits, credits, and accruals manually
manually.
manuall
ally.
lly.

& On
• Reversing Entries
• Organization Need: Reverse
• Procedure: Reverse the l
see errors
errors and revaluation

a e
hee journal encumb
encu
reva
mbrance
mbran
encumbrance
journals.
valuation journals
ce and accru
accrual amounts of a preexisting journal
entry.
r n s
ntries
• Recurring Entries
zation
n t e
ation Need: Create
• Organization U
Crea journalsnals usin
using fixed variable amounts and complex formulas.

e I
ate multiple journ
Create journal entries withth the same or similar information.

c l
• Procedure: Crea
MassAlloc
Create journals using skeleton, standard, or formula template.
• MassAllocations

r a Organ
• Organization Need: Allocate from one account to many by using a single formula.

O P
• Procedure: Calculate journals by using an allocation formula.

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Basic Journal Entries


Chapter 4 - Page 11
• Journal Import
• Organization Need: Integrate Oracle General Ledger with other applications.
• Procedure: Import journal entry information from feeder systems.
• Journal Wizard
• Organization Need: Integrate Oracle General Ledger with an Excel spreadsheet for journal
creation.
• Procedure: Upload journal entries from an Excel spreadsheet.

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Chapter 4 - Page 12
Journal Components

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Journal Components

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Every journal entry belongs to a batch. You create a batch of journal entries by entering a

r a
name, control total and description for the batch.
information, Oracle General Ledger automatically
h. This step is opt
atically creates one
optional. If you do not enter batch
on babatch for each journal entry,
O ly
defaulting the name and the latest open period.

l & On
• All journal entries in a batch share the same period.
pe

a e
descript
iption
ption are optional.
• Entering a batch control total and description optiona

r n
• If you do not enter a batch name, you

s
ou must
must recall th
the journal entry by date.

t e
tion is stored in th
• Batch information
mpanies use standard
Note: Most companies
n
stan
U
the GL_JE_BAT
GL_JE_BATCHES table.
co
naming conventions for batches and journals to easily
identify who

e I
ho entered the jou
al <Initials of the
Accrual
he pu
journal and the purpose of the journal entries. An example would be:
th person who entered the journal> today's date.

cl
ournal Header Information
Journal I

r a
• The head
effec
header information identifies common details for a single journal entry, such as name,
effective date, source, category, currency, description, and control total.

O
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Basic Journal Entries


Chapter 4 - Page 13
Group related lines into journal entries
• All lines in a journal entry must share the same currency and category.
• If no journal entry-level information is entered, Oracle General Ledger assigns a default
name, category, and the functional currency.
• Header information is stored in the GL_JE_HEADERS table.
Journal Line Information
• Journal lines specify the accounting information for the journal entry.
• Total debits must equal total credits for a journal entry for all journal entries except budget
journal entries and statistical journal entries.
• Description for each line can be entered optionally.
• Information for journal entry lines is stored in the GL_JE_LINES table.

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Basic Journal Entries


Chapter 4 - Page 14
Grouping Journals into Batches

m y

A c
Grouping Journals into Batches
• The use of journal batches is optional. If desired,
c l e
d, you can enter a journal directly without
ed,
creating a batch by selecting New Journal in the Find Journa
Journals window. A batch name is
created for you using the source combinedined
ned with a batchh ID aand system date as in Manual
ch
<BatchID><Date>.
• Batches can contain an unlimited ted number of journal
jo entries.
n l y
atch must share
• All journal entries in a batch
rrent or future
journals only in a current
share the
future enterable
en
e O
th same accounting
accoun
account
accounting period.
period. You can enter

t e r U s th current accounting
Note: If you enter a period prior to the accou
riod Notification is set to Yes, General
Enable Prior Period G
period and the user profile Journals:
Ledger displays a message indicating

I
• If you post one jour n
that you are entering a prior pperiod journal.
ournal.
journal entry, the entire batch posts.

c l e
• When using th the reversing functionality, you can choose to reverse all the entries in a batch
or just one journal.

r a c post journal entries with unbalanced debits and credits if Suspense posting is
• You can

O enabled. The difference is posted to the suspense account. If suspense posing is not

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Basic Journal Entries


Chapter 4 - Page 15
enabled, you cannot post an unbalanced journal entry except for statistical or budget
entries which do not have to be balanced to post.
How to Create a Journal Batch
1. Open the Find Journals window.
(N) Journals > Enter (B) New Batch
2. Select the New Batch button. The Batch window appears.
3. Enter the following information:
Batch Demo Computer Purchases and Sales
Period Select the latest open period
Control Total 220000 (This field is optional)
4. Select the Journals button to enter a journal header and journal lines.
5. Enter the Journal Header information:
Journal Demo Computer Purchase
Category Addition
Currency USD
6. Enter the following journal lines:
Line Account Debit Credit Description
10 01-000-1560-2113-000 85000 Computers and Software
20
30
01-000-1110-2113-000
01-000-2210-2113-000
5000
80000
Cash
ble
le
Accounts Payable
m y
d e
7. Save. In the Decision window, select Yes to save the journal entry, even though ther
control total violation. a
there is a

c
e
d journal entry
8. In the Header level, select the New icon to create a second entry wi
A
within this batch.
9. Enter the following header information:
Name
c l omputer
mputer Sales
Demo Computer
Category
r a enue
Revenue
Currency
O ly USD
10. Enter the following information for the second journal
jo entry:
Line Account
l & On Debit
itt Credit Description
10

n a e
113-000
01-000-1210-2113-000 135000
13 Accounts Receivable
20
11. Save your work.
t e r
10-2113-000
01-420-4110-2113-000

U s
1350
135000 Revenue

I n
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Basic Journal Entries


Chapter 4 - Page 16
Manual Journal Entries

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Manual Journal Entries

c l
Your functional currency appears as the default currency
rency when you oopen the Enter Journals
window.
r a
• Foreign Currency Journal Entries
O ly
- To enter a foreign currency journal, specify
specify th currency yyou want to use and enter
y the
conversion information.
l & On
- Conversion type can

n a e
an be Spot, Corpo
porate,
ate, User, or oother defined type.
Corporate,

r
- Conversion date te must be within
in the accounting
accounting period defined for the journal entry.
onversion rate if you enter
- Enter a conversion
t e U s enter User as the conversion type.

n
• Statisticall Journal Entries

I
statis
- To enter a statistical journal ent
entry, select STAT as the currency for the journal entry.

c l e j
- Statistical journal entries can be "one-sided" entries. The debits do not need to equal
credits for the journals to post.

r a Co
- Combined Currency and Statistical Amounts

O - You can enter a statistical journal entry by itself or combined with currency journal
amounts.

Copyright © Oracle Corporation, 2007. All rights reserved.

Basic Journal Entries


Chapter 4 - Page 17
- Set the Journals: Mix Statistical and Monetary profile option to Yes.
- Define a statistical unit of measure for any natural account segment values you want
to combine statistical and monetary journal entries.
- When entering the journal lines, use debit and credit amounts for any monetary
currency. In the Statistical Amounts region, enter the statistical quantity.
• Intercompany Journal Entries
- Enter the intercompany transaction. General Ledger automatically creates the
balancing intercompany journal lines based on the accounts you defined in the
Intercompany Accounts window.
How to Create a Manual Journal Entry
1. Open the Batch window.
(N) Journals > Enter (B) New Batch
2. Enter the Batch and Period.
3. (B) Journals
4. Enter data for the following fields:
Journal
Period
Category
Currency
Description
m y
5. Enter journal line information.
6. Save your work.
d e
7. Select Yes to close the message box telling you that the debits do
One-sided journal entries can be posted when the currency iss STAT.
o not equal
equal the cre
ca
credits.

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Chapter 4 - Page 18
Performing Additional Journal Actions

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Performing Additional Journal Actions

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You can use the More Actions window to perform additional journal activities.

r a
Reverse Journal: You can reverse a journal entry try Select a reversal period if prompted.
ry or batch. Selec

O ly
Select the reversal method: Switch Debit/Credit
Change Period: Select this button to change
Credit or Changee Sign.
hange the period entry.
od of any entry

l & On
Post: Select this button to launch the concurrent
concurrentt pprocess to post a manual journal entry and
sting is availablee in the More Ac
update account balances. Posting

n a e
option Journals: Allow Posting During Journal
Jo
Actions window only if the profile
Entry is sset to Yes.

(N) Journals > Post.


t e r entr

U s
tries by navigating
Note: You can also post journal entries navigatin to the Post Journals window.

ction: If you enab


Funds Action:
I n
enable budgetary y co
control for a ledger, you have the following additional

cl e
ns available for m
actions
• Check funds
manual journal entries:

r a
• Reserve funds
Vi results
• View
O
Copyright © Oracle Corporation, 2007. All rights reserved.

Basic Journal Entries


Chapter 4 - Page 19
Posting Journals

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Posting Journals

c l
You have three methods to post journal batches.

r a
Batch Posting: Navigate to the Post Journals window to post a ggroup of journal batches.
(N) Journals > Post
O ly
& On
Manual Posting: Select the More Actions
tions button from Journals window or the Batch
m either the Jou

ing l
window to post a journal batch att the time of entr
ng During Journal
option Journals: Allow Posting
a e Journa
entry.
y. This option is
ntry.
rnal Entry has been
i available only if the profile
bee set to Yes. When you post

journal entries in a batch.


r n
journals, Oracle Generall Ledger posts all

s
ll journals
jourrnals in a ba
batch. You cannot post individual

t e
(N) Journals > Enter (B) More A

n Uons
Actions

e
ule you define.
schedule I
Automaticc Posting: Run the AutoPost program
prog to post journal batches automatically based on a

c l
N) Setup > Journ
(N) Journals > AutoPost

r a Journ Batches
Posting Journal
You can post actual, budget, and encumbrance journal batches.

O
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Basic Journal Entries


Chapter 4 - Page 20
The Posting Status for the batch must be Postable and the Period Status must be Open for the
following balance types:
• Actual: Open period
• Budget: Periods in an open budget year
• Encumbrance: Any period up to the last period in the latest encumbrance year
If applicable, check the Control Total for the journal entry batch. General Ledger does not post
journal batches if the total entered debits do not match the control total for the batch.
Correcting Batch Posting Errors
Review the batch to identify the posting error. Common explanations for unpostable batches
include:
• Control total violations
• Posting to unopened periods
• Unbalanced journal entries
Correct the specific error and post the batch from the More Actions window.
Posting Status
• Unposted
• Pending
• Processing
• Selected for posting
• Posted
m y
• Error
How to Post Journal Entries
d e
1. Open the Find Journal Batches window.
ca
(N) Journals > Enter
2. (B) More Actions
e A
3. (B) Post
c l
r a
4. Note the concurrent request ID number.
5. Select OK in the Note window.
6. Open the Post Journals window. O ly
(N) Journals > Post
l & On
8. Select the check box.x.
ches
7. In the Find Journal Batches

n a e
hes window, find
nd your batch.

9. (B) Post
t e r U s
n
10. Note thee concurrent request
requ ID D number.
ect OK to close tthe Note window.
11. Select
I dow

c l e
r a
O
Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 4 - Page 21
m y

A c
c l e
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O ly
l & On
n a e
t e r U s
I n
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Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 4 - Page 22
Data Access Set Impact to Posting

m y

A c
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n a e
t e r U s
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Chapter 4 - Page 23
Posting to a Prior Period

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Posting to a Prior Period

c l
You can post journal entries to a prior accounting period,eriod, as well as tto a prior fiscal year, as

r a
long as the prior period is open. When you postt to a prior period
updates the beginning balances of all subsequent
quent periods eve
period, General Ledger automatically
even
ven if the period is closed. In
O ly
addition, if you post a journal entry intoo a prior
prior year, General
Ge Ledger
Ledg adjusts your retained

When you finalize your activity


l & On
earnings balance for the effect on yourour income and
ty for an accounti
d eexpense accoun
nting period, simp
accounting
accounts.
simply close the period to prevent
ditional journal entries.
the entry or posting of additional
n a e en
Displaying Warning Messages
To ensure that you
t e r
ou do not accid
U s
en ally enter a jo
accidentally journal for a prior period, you can require
dger to display a message
General Ledger
ture,
I n
ure, have your system
this feature, sy
m whenev you try to enter a prior period journal. To use
whenever
t
administrator set the profile option Journals: Enable Prior Period

cl e
fication to Yes.
Notification
Having many ac accounting periods open affects the time required to run the posting program.

O ra k
Therefore, keep the number of open accounting periods to a minimum. Also, minimizing the
number of open periods prevents errors in posting to an incorrect period.

Copyright © Oracle Corporation, 2007. All rights reserved.

Basic Journal Entries


Chapter 4 - Page 24
You should run a Trial Balance Report whenever you post to a previous fiscal year to ensure
that your Retained Earnings account is properly reconciled.

m y
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Chapter 4 - Page 25
Overview of AutoPost

y
d em
c a
e A
Overview of AutoPost

c l
To facilitate journal batch posting, you can schedulee automatic pos posting based on parameters
postin

r a
you specify. You can define multiple criteria sets
and multiple AutoPost priorities.
ts that include a rrange of journal effective dates

O ly
For example, suppose after running Journal urnal Import,
Imporrt, you
ou routinely post
p journal entries from

l & On
Payables to record your payments.. To automate pos
ournal entries with
criteria to select all unposted journal
osting these batch
posting
wit a source of P
batches, you can define a set of
Payables, a category of Payments,
and a balance type of Actual
n a e
ual for all periods.
periods
ds. You can then schedule the AutoPost program to

t e r
Payables paymentt batches to updat
update
U s
run at the beginning off each week. Ora racle General
Oracle General Led
tee your cash bal
Ledger automatically selects and posts your
balances.

I n
c l e
r a
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Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 4 - Page 26
Defining AutoPost Criteria Sets

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Defining AutoPost Criteria Sets

c l
You can define multiple AutoPost criteria sets to automatically
tomatically post jjournal entries. For each
utomatically

r a
criteria set, you can choose to select journal batches
ches for posting bbased on:
• Journal source
• Journal category O ly
• Balance type
l & On
• Period

n a e
• Effective date

t e r U s
riority of the crite
You can set the priority eria
ria set. The pri
criteria priority number must be a value from 1 to 99,

I n
where 1 is thee highest priority and 999 is the lowest.
first. Youu can use the same
sam priority number
lo Batches with higher priorities are posted
mb more than once. You can also select whether all
ity sets are cons
priority

c l e consid
considered for posting or only sets with a specific priority number:
P
• Submit All Priorities in Order: Submits the batches for all of your AutoPost priorities in

r a Sub
• Submit
sam AutoPost run based on priority number.
the same
Only Priorities with Batches in Order: Submits batches with a specific priority

O number only.

Copyright © Oracle Corporation, 2007. All rights reserved.

Basic Journal Entries


Chapter 4 - Page 27
Note: Select this option when you need to balance the load on your concurrent manager. This
may be necessary since a single AutoPost request that contains multiple priorities can result in
numerous instances of the Posting program running concurrently. The load on the concurrent
manager is increased further if a large number of journal batches are selected by your AutoPost
priorities.

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Chapter 4 - Page 28
Running AutoPost

y
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Running AutoPost

c l
Once you define an AutoPost criteria set, run the AutoPost
utoPost program to select and post any

r a
journal batches that meet the specified criteria.
You can run the AutoPost program from:
O ly
• AutoPost Criteria Sets window: (N)) Setup > Journ
Journal
urnal AutoPost
rnal > AutoPo
• Submit Request window: Enter
l & On
nter the AutoPostost
st criteria
criteria set name
nam in the Parameters window.

n a e
ution Report to ve
Review the AutoPost Execution verify
veri fy the journal batches selected for posting.

t er U s
I n
c l e
r a
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Chapter 4 - Page 29
Performing Online Inquiries for Accounts and Journal Entries

y
d em
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c l
Performing Online Inquiries for Accounts and Journal urnal
rnal Entries
Oracle General Ledger provides three windows to view detail and su summary information for

r a
your account balances, journal entries, and subledger
edger accounting transactions:
• Account Inquiry
• Journal Inquiry O ly
• Journal Enter
l & On
urnals window or the Account In
Whether you start in the Journals

n a e Inquiry window, you can take

r
ical
cal view of underlying
advantage of the graphical under
derlying accounting
accountin information for your transactions by
count and Activit
accessing the T Account

t e
actions that created
subledger transactions
U s
ity Summary wi
Activity windows. You can also drilldown to see the
creat the journal entries.
e

I n
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r a
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Chapter 4 - Page 30
Performing Account Inquiry

y
d em
c a
e A
Performing Account Inquiry

c l
Use the account inquiry feature to view actual, budget, encumbrance account balances for
get, and encumbra
encum

r a
a specific period or periods in either entered or balance level repreporting currencies.

• Show Balances: Displays PTD and O ly


You can select one of three buttons to access ss the
the type of account
nd YTD account
ccount information you want to view:
acc
nt balances by period
p for both detail and
summary accounts.
l & On
n a e
ists all
• Show Journal Details: Lists all the journa
dow
balance. From here you can drill down
rnal
nal batches
journal batches and eentries that affect the account
own to the full jou
journal entry and subledger transaction.
• Show Variance:
PTD, QTD,
t e r
e: Displays actual

U s
al vs. budget orr eencumbrance amounts and the variance for
D, YTD, and PJTD (project-to-date)
project-to-da time periods.

I n
Note: The Account Inquiry window displaysispla balances from posted journal entries. To get the

e
most up-to-date account
accoun balance information, be sure all journal entries are posted.

c l A
How to Perform Account Inquiry

r a
1. Open the Account Inquiry window.
(N) Inqu
Inquiry > Account

O 2 Enter the following selection criteria for Accounting Periods:


2.

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Basic Journal Entries


Chapter 4 - Page 31
From JUN-03
To Current period
3. Accept the defaults for Currency and Primary Balance Type
4. In the Accounts region, use the Find Accounts window to enter a range of accounts:
Segment Low High
Account 2210 2210
Sub Account 0000 2113
5. Select account 01-000-2210-2113-000 and then select the Show Balances button.
6. In the Detail Balances window, put your cursor on the line for the current period. Select
the Journal Details button to view the journal information for this account.
7. Select the Show Full Journal button to drill down to the journal entry that created this
information.

m y
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Chapter 4 - Page 32
Reviewing Balances with Account Inquiry

y
d em
c a
e A
Reviewing Balances with Account Inquiry

c l
When you perform an account inquiry, you can navigate summary account balances to
gate from summ

information: r a
detail balances. You have several navigation options
ptions between summary and detail
tions to move bet

• From detail account balances, you O ly


u can drill down to journal entries that make up the
t the journa
account balances or drill back

l & On
k up to the summ
summa
mary account bala
summary balance.

a e
furth
rtherr to review the subledger transaction by
• From the journal entry, you can drill further
wn button,
selecting the Drilldown
n
button, whenn available.

r s
• If drilling downn from a consolidated
conso idated
consolida
dated journal batch,
bat you can drill further to see subsidiary
ry
y details and subledger
journal entry

n t e U
sub dger transactions.
transacti
transacti The button, Drilldown to [subsidiary

I
on if youu are reviewing
ledger name], appears only re consolidated balances in your parent
ger.
ledger.

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r a
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Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 4 - Page 33
Reviewing Variances Between Account Balance Types

y
d em
c a
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(N) Inquiry > Account > (B) Show Variance
c l
Reviewing Variances Between Account Balance Types

r a
You can compare balances between any primary y account type, such as:
ry and secondary
• Actual and budget
O ly
& On
• Budget and budget
• Actual and encumbrance
ry
You must specify a primary l
a e
y and secondary
y balance
balance type and
an select a budget or encumbrance
are
re balance amoun
type in order to compare
r n s
unts.
amounts.

n t e U
e I
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Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 4 - Page 34
Drilling Down to Subledger Details

y
d em
c a
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Drilling Down to Subledger Details

c l
You can drill down from the Account Inquiry, Journal nal Entry, and Jou
Journal Inquiry windows.

r a
• From the Account Inquiry window, drill down to the journal journa entry, then select the

O ly
Drilldown button, then the Show Transactions
• From the Journal Inquiry and Journals
nsactions
sactions button.
urnals windows,, review
r
n.
the journal
jo entry and select an

l & On
ournal entry.
account combination in the journal entrry. Sele
elect Drilldown fr
Select from the Tools menu.

following Oracle subledgers:


n a e
You can only drill down to subledgers
ubledgers if the journal
j
gers: Payables, Receivables,
Receivabl
R
entry wa
Inv
was generated from one of the
Inventory, Assets (except depreciation),
Projects, Purchasing,
• For Payables,
t r U s
g,, and Work in Process.
e
Pr
les, you can see ddetailed
iled inform
information about payments and invoices.

I n
• For Receivables, you can c see detailed
ailed information about invoices, receipts, adjustments, or

e
ash applications.
cash

c l
Inventory Assets (except Depreciation), Projects, Purchasing, and Work in Progress
• For Inventory,

r a you can ssee the detailed information about transactions.


Note: In order to drilldown to subledger transactions, you must enable the Import Journal

O Refe
References option for each journal source in the Journal Sources window.

Copyright © Oracle Corporation, 2007. All rights reserved.

Basic Journal Entries


Chapter 4 - Page 35
Note: If your implementation uses Multiple Organizations, you see only subledger transactions
that are associated with your current responsibility's organization (MO: Operating Unit profile
option). For more information, refer to the Oracle General Ledger User Guide.

m y
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O ly
l & On
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Chapter 4 - Page 36
T Accounts and Drilldown

y
d em
c a
e A
T Accounts and Drilldown

c l
You can view journal entries or subledger accounting graphical format using the T
ng entries in a gra
Account and Activity Summary windows.
r a
You access these windows from:
Enter Journals Window O ly
M) Tools > T Accounts
(N) Journals > Enter (B) Find (M)
l & On Acc
ccounts (B) T Accounts
Acc
Journals Window

n a e
quiry
B) Find (B) Review
(N) Journals > Enter (B)

t
uiry Window
Journal Entry Inquiry
e r U s
Revie
view Journal (M) Tools > T Accounts (B) T Accounts

Account I
nt Inquiry Window n
(N) Inquiry > Journal > (B) FFind (M)) Tools > T Accounts

N)) Inquiry > Acco


(N)

c l e Account (B) Show Journal Details (M) Tools > T Account or

a
(N) Inquiry > AAccount (B) Show Journal Details (B) Drilldown > (B) Show Accounting

O r
Transactio (B) T Accounts
Transactions
Acco
Accounting information is viewable in two different formats that can be customized:

Copyright © Oracle Corporation, 2007. All rights reserved.

Basic Journal Entries


Chapter 4 - Page 37
• T Accounts: Displays journal entries or subledger accounting entries in a graphical T
Account format including account, activity detail, net activity for the entry and account
balance information.
• Activity Summary: Displays journal entries and subledger entries in a trial balance format
including account, net activity for the entry, and account balance information.
The Activity Summary and T Accounts windows are for display purpose only. You cannot
update records from these windows.
Drilling Down to Subledgers
Using the Tools menu, you can also drilldown to originating transactions in Oracle subledgers.

m y
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Chapter 4 - Page 38
Display Options Available While Viewing

y
d em
c a
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Display Options Available While Viewing

c l
The first time you try to access the T Accounts or subledger
ubledger accounting
accounti windows, the Options

r a
window appears. You can then specify which wi
accounting information. You can set the T Accoun
ndow opens the next time you choose to view
window
Accounts, Activity
ts, Activit Summary, or Options window as
vity Su
the default window.
O ly
Use the Options window to customize

l & On
mize the T Accoun
display the exact information you want. You can
ounts
unts and Activity Summary windows to
Accounts
ca choose to vieview:
• Accounting information
n a e
tion by full accounting
accou
acco
ounting flexfield
flexfield or summarized by account segment.
ption, balances, entered
• Account description,
r
escription, balanc
• Account description,
t e U s e amount
amounts, and activity in the T Accounts window.
balances, entered amo
am
amounts in the Activity Summary window.
• Debits
I n
tss and credits in se umn or as a net amount in the Activity Summary
separate columns

e
indow.
window.

cl
The Options, T Ac Accounts, and Activity Summary windows are all linked. From any of these

a
windows, you can access the other two windows by clicking the appropriate button.

r
O
Copyright © Oracle Corporation, 2007. All rights reserved.

Basic Journal Entries


Chapter 4 - Page 39
T Accounts

y
d em
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T Accounts

c l
Use the T Accounts window to view journal entries in a graphical T Account format. General

r a
Ledger displays information for the journal entry,
for the entry, and account balances in both entered
accounts, activity details, net activity
ry, such as accoun
functional
ctiona currency. Customize the
tered and funct
nctiona
display to meet your inquiry needs.
O ly
How to Use T Accounts and Activity
& On
vity Summary

l
a e
1. Enter Demo% in the Batch ch Name field annd select
and select the Fin
Find button to retrieve the Demo
Computer Purchase and
(N) Journals > Enter
r n
nd Sales journal

s
al batch.

t e U
2. Select the Review Journal button.

n
b on.

e
(M) Tools > T Accounts
AccounI
3. Selectt a journal line an
and navigate to th
the T Accounts window.

c l Option window, select the Segment radio button in the Organize By region. Select
4. In the Options

r a Com
the Company and Account segments from the List of Values.
Sel the T Accounts button to view a graphical t-account display of the accounting
5. Select

O information.

Copyright © Oracle Corporation, 2007. All rights reserved.

Basic Journal Entries


Chapter 4 - Page 40
6. From the T Accounts window, select the Activity Summary button to view the same
information in a trial balance format.
7. Select the Options button to return to the Option window.

m y
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Chapter 4 - Page 41
Activity Summary

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Activity Summary

c l
The Activity Summary window contains a view of the accounting en entry, summarized by

r a
account in a trial balance format. This columnarr layout groups de
account to provide a high-level view of the transaction.
ransaction.
debit and credit amounts by

In this window, you can: O ly


l & On
• Display debits and credits in separate columns
columnsns with separate columns for entered and

a e
functional currency, or
ount of debits andd credits in one ccolumn.
• Display the net amount
r n s
n t e U
e I
c l
r a
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Chapter 4 - Page 42
Reversing Journal Entries

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Reversing Journal Entries

c l
You can create reversing journal entries to reverse accruals, estimate
estimates, temporary adjustments
estim
and reclassifications, or correct errors.
r a
O ly
You can reverse a journal entry in two ways:
• Switch Dr/Cr: Journal entry is reversed
ys:
versed by switching
switchi
ching the debit and credit amounts.
hing the

l & On
• Change Sign: Journal entry is reversed by changing
ch the orig
original journal amounts from
positive to negative.

n a e
r
A journal entry can be reversed only onc nce. You can rev
once. reverse a reversing journal entry.
You control which
brance
Enter Encumbrance
t e U s
h responsibility ca
an reverse journal
can
rance window by excluding
journ entries directly from the Enter Journals or
jour
luding the function called Enter Journals: Reverse from the
ility's
I
lity's menu.
responsibility's
n
c
rsing Journal Bat
Reversing
l e
• You can reve
Batches
reverse a single journal entry or an entire batch of journal entries. When you

r areverse a batch, General Ledger creates a reversing batch with a reversing journal entry for
each journal entry in the original batch.

O
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Basic Journal Entries


Chapter 4 - Page 43
• General Ledger uses the reversal method assigned to the journal category in the Journal
Reversal Criteria window.

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Chapter 4 - Page 44
Creating Reversing Journals

y
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Creating Reversing Journals

c l
You have two options for manually selecting journall entries for reve reversal. You can create the

r a
reversal immediately or enter the period and generate reversal later.
nerate the reversa

O ly
Use the More Actions window to immediately ately
batch in the current period or future enterable
tely reverse
reverse any
nterable period.
y posted
p or unposted journal entry or

l & On
(N) Journals > Enter (B) Review Journal (B) More ore
re Actions
(N) Journals > Enter (B) Reviewview
a e
ew Batch (B) More

n
M Actions

r
Use the More Details windowindow to definee a reversal
reversal perio
period for a journal entry. Then, select the
ater
ter time, to be reversed
journal entry at a later

t
(N) Journals > Enter (B) Revie U s
rev
eversed
eve rsed in the Re
ew Journal
Review urnal (B) M
Reverse Journals window.
More Details

I n w
Use the Reverse Journals window ene
to generate reversal journals with a predefined reversal
d, such as monthly
period,

c
eriod.
period.
l e monthl accruals, that need to be reversed at the beginning of the following

r a
(N) Journals > Generate > Reversal
Note: If you select the Reversal button in the More Details Window, the reversing journal will

O be ccreated immediately.

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Basic Journal Entries


Chapter 4 - Page 45
Reversing Journals Automatically

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Reversing Journals Automatically

c l
If you routinely generate and post large numbers off reversing journal entries as part of your

r a
monthly procedures for closing and opening accounting
Journal Reversal feature to save time and automate
periods, you can use the Automatic
counting periods
process.
utomate the proce This feature automatically
cess. T
O ly
reverses your previous month's accrual journal entries and automatically post them, if desired.
an automa
automat

l & On
ionally AutoPost
• Enable AutoReverse, and optionally st Reversal, optio
options for journal categories.

a e
egories
gories with Auto
• Enter journals using categories toReverse enable
AutoReverse enabled.
• Launch the Automatic tic
n
ic Reversal
Reversal prog
r
program

s
ogram by:
- Submitting
e
g a request fro
from
am for all journals
program

n t
m the Submit Req

U
journal that
Request window to run the Automatic Reversal
hat meett the submission requirements, or

e I
- Setting the profile option, GL:
L: La
Launch AutoReverse After Open Period, to Yes. When
you open the next period, the AutoReverse program finds all journal entries that have

cl categories with AutoReverse and, optionally AutoPost, enabled. It creates reversing


journ entries and, optionally, posts them.
journal

r a
O
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Chapter 4 - Page 46
Journal Reversal Prerequisites

m y

A c
c l e
r a
O ly
l & On
n a e
t e r U s
I n
c l e
r a
O
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Chapter 4 - Page 47
Running Journal Entries Report

m y

A c
c l e
r a
O ly
l & On
n a e
t e r U s
I n
c l e
r a
O
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Chapter 4 - Page 48
Integrating with Oracle General Ledger

y
d em
c a
e A
Integrating with Oracle General Ledger

c l
You create your journal entries in a spreadsheet, using
ing
ng all of the Microsoft Excel features that
the Mic

r a
you are familiar with. When you are ready, upload oad your journal eentries from Web ADI to the
GL_INTERFACE table. From the interfacee table, submit the Journal Import process to create
he Jou
postable journal entries.
O ly
& On
Journal import can be submitted inn three ways:

l
a e
• From Web ADI, at the same ame time you sububmit the upload process
submit
separate submis
• From Web ADI as a separate
r n submission

s
mission
ission process

n t e
• From General Ledger using the the Import Journals

U
urnal entries have been
When your journal
Journal window.
n validated
validat by Oracle General Ledger, unposted journal

I
entries are created and can be reviewedd in the Enter Journals window in General Ledger.

e
c l
r a
O
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Chapter 4 - Page 49
Web Applications Desktop Integrator Overview

y
d em
c a
e A
Web Applications Desktop Integrator Overview

c l
Web ADI brings Oracle E-Business Suite functionality lity to the desktop where the familiar
ality

Business Suite tasks. r a


Microsoft Excel, Word, and Project applicationss can be used to complete
c your Oracle E-

The Web ADI integration with Microsoft O ly


oft Excel enables
soft les bring your E-Business Suite
es you to brin
data to a spreadsheet where familiar
complete Oracle E-Business Suite
l & On
ar data entry
entry and
uite tasks. You can
nd modeling techn
c create form
forma
techniques can be used to
formatted spreadsheets on your

n a e
desktop that allow you to download, view, w, edit, and create Oracle E-Business Suite data. Use
such
uch as copying and
data entry shortcuts (such

t e r
Excel formulas to calculate amounts s an pasting
pasting or dr
amounts to save tim
U
dragging and dropping ranges of cells) or
time. You can combine speed and accuracy by

n
fiel within
invoking lists of values for fields thin the spreadsheet.
sp After editing the spreadsheet, you can

I
ness Suite. Validation
Business
e Valida
f
use Web ADIs validation functionality y to validate the data before uploading it to the Oracle E-
messages are returned to the spreadsheet, allowing you to identify
nd
c l
d correct invalid data.
and

r a busines rrules these users encounter in the main application are enforced within the Web
All business
ADI work
worksheet. For example, if the wrong cost center is entered for a journal, the data will not

O co
be committed to the database; a message will be returned directly to the worksheet where the

Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 4 - Page 50
invalid data exists; the user can then quickly make the correction and save their Excel data to
Oracle General Ledger.

m y
d e
ca
e A
c l
r a
O ly
l & On
n a e
t e r U s
I n
c l e
r a
O
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Chapter 4 - Page 51
Web ADI Core Functionality

y
d em
c a
e A
Web ADI Core Functionality
Layout Features
c l
r a
• Remove and add fields to a Layout: Userss are only presen presented with the fields they need,
presente

productivity. O ly
resulting in simpler UI and shorter navigation
vigation
viga tion paths between
bet needed fields increases

• Indicate field placement in the


l & On
he Layout: The UI U can conform to t your business process. If

a e
entering data in a certain n order will quicke
cken
ken entry,
quicken entrry, then fi
fields in the UI can be ordered in a
similar way.
• Assign a default
r n s
ltt value to a field
d in a Layout: SaSave time by having default values
lly
automatically
t e U
ly populate the ddocument

n
cument
cum ent when it is generated.
• Save the
I
he layout: Layout
Layouts can be define
ed by the entire site.
used
e
s
defined by one with the appropriate responsibility, then

ext Import Featur


Text
c l Features

r a te file data into a document on the desktop (i.e. Excel worksheets): Move data
• Import text
from legacy or third party systems into Oracle Applications. The data will be accurate

O since it will move through the desktop document allowing for edits, then validated before

Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 4 - Page 52
it is uploaded. Data conversion from other systems is simplified by eliminating the need
for custom SQL scripts.
• Create Mapping Templates which can be modified and re-used: Change where data is
moved on the fly. Accommodate organizational changes and data restructuring by the easy
creation or modification of mapping templates.
Security Features
• Attach Web ADI functions to a menu: Create customized points of access which act as
security profiles.
• Attach a menu to a responsibility that is assigned to users: Restrict Web ADI access on the
user level.
• Add default parameters to a self service link: Force users to use predefined parameters
when generating a document on their desktop.
• Attach form function to a user's menu to grant access to an integrator: Determine the
desktop functionality within Web ADI to which a user has access.
Internet Computing Features
• Centrally Deployed: The client needs only a browser and Excel to operate the product.
• Runs on the Web: The client/server ADI installs everything to the PC, including all of the
business rules. The move to a web architecture means that the business rules are now
installed on the middle tier. So when Web ADI communicates with the database, only data ta
is sent.

m y
d e
ca
e A
c l
r a
O ly
l & On
n a e
t e r U s
I n
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r a
O
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Chapter 4 - Page 53
Desktop Integration Via Web ADI

y
d em
c a
e A
Desktop Integration Via Web ADI

c l
The Oracle E-Business Suite task you perform on the he desktop is dete
determined by the integrator

r a
you select in Web ADI. Each integrator is deliveredered with the E-B
vered
provides the functionality being integrated with the desktop. p.
E-Business Suite product that

O ly
General Ledger - Journals Integrator Features
eatures

l & On
sheet-based journ
• Automatically builds spreadsheet-based jour nal entry worksheets
journal worksh based on a definable

a e
layout.
• Enables quick journal
modifications.
r n
nal entry by copyi

s
pying
ying and pasting
copying past journal lines, then making incremental

n t e
• Allows youu to define journal
U
journa templates
emplates which
wh you can modify and upload repeatedly.

e
alidation of accounts
• Full validation
I acco
as other reference fields.
enfor
with enforcement of security and cross validation rules, as well

c l journal into Oracle General Ledger through the General Ledger open interface.
journ
• Loads journals

r a
Confor to Oracle General Ledger Euro compliance rules.
Conform
• Conforms
Pro
• Provides lists of values for fields (including KFFs and DFFs) within the spreadsheet.

O
Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 4 - Page 54
General Ledger - Budgets Integrator Features
• Automatically builds budget worksheets, based on the budget elements you define in
Oracle General Ledger.
• Creates budget worksheets for any open budget period range.
• Provides a flexfield pop-up window to assist entering and validating new budget accounts.
• Enforces segment value security in budget worksheets.
• Limits the accounts that are downloaded.
• Creates graphs of your budgets and actuals using a variety of graphing styles, including
bar graphs, line graphs, and even 3-D area graphs.
• Provides budget notes to add descriptions to accounts and amounts in your budget.
• Create Assets Integrator and Physical Inventory Integrator Features
• Use the Layout feature to define personalized asset worksheets.
• Allows spreadsheet cut, copy, and paste functionality.
• Provides Lists of Values for easy access to valid field information.
• Maps data files into asset worksheets when used in conjunction with the Import Text File
feature.
• Full validation of accounts with enforcement of security and cross validation rules, as well
as other reference fields.
• Posts assets to Oracle Assets through the Mass Additions table.
HRMS Integrators Features
m y
• Oracle HRMS delivers a number of Integrators that support download of data
various windows and folders.
ata from

d e
• Another delivered Integrator provides both download and upload support for salary
proposals and administration.
ca
• In addition, a system administrator can configure Web ADI for HRMS to download data

e A
new Integrators as required.
c l databa by setting up
from any other HRMS window or directly from the application database,

r a
O ly
l & On
n a e
t e r U s
I n
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Chapter 4 - Page 55
Administering Web ADI

y
d em
c a
e A
Administering Web ADI

c l
System Administrators can also edit mappings and layouts for all integrators.
int
Implementation Methods
r a
O ly
• Generally, the product implementation methods:
n follows one off two m

& On
- The product integrates the generate spreadsheet
spreadsh
spreadsh functionality within its own
sheet functiona

l
functional page flow. Web ADI is usedd in

a e
mmon method.
This is the most common
background to generate the spreadsheet.
i the backgrou

rovides a self-ser
- The product provides
r n
self-service

s
ervice menu item that invokes the Web ADI Create
Documentt page flow.

n te U
e I
c l
r a
O
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Chapter 4 - Page 56
Creating Web ADI Spreadsheets

m y

A c
c l e
r a
O ly
l & On
n a e
t e r U s
I n
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Chapter 4 - Page 57
Working With Web ADI Spreadsheets

y
d em
c a
e A
Working With Web ADI Spreadsheets
Viewing Data
c l
r a
• The toggle bars at the top of the spreadsheet eet allow you to ttoggle on and off the views of

O ly
each of the sections: Context, Header, and
Microsoft Excel filtering on the line
nd Lines. Webebb ADI enables you to turn on
ne items. This iss useful when your spreadsheet contains
many rows of data.

l & On
a e
Multiple Worksheets

generate multipleple
r n multip
• Your spreadsheet may contain multiple

s
tiple worksheets
workshee if your product integrator is defined to
le worksheets or if your downloaded
downlo data exceeds 64,000 rows, multiple

n t
worksheets will be automa
e
automatic
Ully created. If your spreadsheet contains multiple
automatically

I
heets,
eets, then at upload
worksheets, uplo
up wil be presented the options of Upload or Upload
time you will
l.. Upload will upl
All. upload only the current worksheet. Upload All will upload all

c l e
worksheets.
Graph
Viewing Graphs

r a
• If you
your integrator supports graphs, your spreadsheet will include additional graphing

O op
options.

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Chapter 4 - Page 58
Defining Web ADI Layouts

y
d em
c a
e A
Defining Web ADI Layouts

c l
Layouts enable you to customize the user interface presented in your spreadsheet. Use the

default values for the fields. r a


layout functionality to determine the fields in a spreadsheet, set their
t positions, and specify

O ly
A layout must be available before you create a spreadsh
spreadsheet
dsheet Create Document flow. Some
sheet in the C

create a layout.
ts,
integrators offer predefined layouts,

l & On
s, or you can use
use the procedure described
d in this chapter to

n a e
Note: For some products,, the layouts aree predefined
predef
p fined and ppreselected. Therefore you cannot

our
Note: Unless your
you

t e r
ur User is assign
U
assigned s
youtt during docum
select an alternate layout ument creation.
document
d the System A Administrator responsibility, you must be
ess to an integrator
granted access
specific integrators.
I n
integrato to modify
dify its layout. Specific form functions grant access to

c l e
r a
O
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Chapter 4 - Page 59
Defining Web ADI Mappings

y
d em
c a
e A
Defining Web ADI Mappings

c l
You can choose to automatically import data into thee spreadsheet during
du the Create Document

r a
flow. When you choose to import data on the Content
mapping. Web ADI requires a mapping to determine
ontent page, Web ADI prompts you to select a
determine wheree imported
impo
i data should be placed in
the spreadsheet.
O ly
l & On
Mapping associates columns in thee imported data with w columns in the spreadsheet. You do not
need to create new mappings for fields that doo not have data, or o if a mapped field is not
et. You need to crea
included in the spreadsheet.
n a e create
cr te multiple mappings
m for Content only if the
associations between the

t r s
he downloaded ccolumns and the fields in the spreadsheet change. If you

e sttructures, you may


import text files with varied data structures,
U
m have to define more than one mapping for

n
each text file variation.
Note: Do

e I
o not modify Con wn
Contents that download data from the Oracle E-Business Suite.

c l
e: To modify an integrator's mappings, you must be granted access to the integrator or have
Note:
Adm
the System Administrator responsibility.

r a
O
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Chapter 4 - Page 60
Defining Web ADI Style Sheets

y
d em
c a
e A
Defining Web ADI Style Sheets

c l
The Style Sheet enables you to define the following the Sheet, the Prompts, the
g properties for th
Hints, and the Data fields:
r a
• Background color
• Font color O ly
• Font Family
l & On
• Font Style

n a e
• Font size
Navigate to the Create
t e r
reate Style Sheet
U s
Sh page using the Define Style Sheet link. This may be under
the Desktop Integration

I n
ntegration responsibility,
assigned to you by your sy
respon ty, or it may
istr
system administrator.
m be located under a different responsibility

c l e
ct a Read Only co
Select color to apply to the background of read-only fields. Read-only fields take
propertie of Data fields. Use the color picker to select a color, or for additional color
the font properties

a
options, you can enter the hexadecimal value for the color in the field provided (for example,
r #A5
enter #A52A2A for brown).

O
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Chapter 4 - Page 61
Defining Web ADI Setup Options for Key Flexfields

y
d em
c a
e A
c l
Defining Web ADI Setup Options for Key Flexfields
Web ADI provides the option to set right-justification
ds
padding for every segment of a
on and zero padd

r a
key flexfield, regardless of this setting at the value
lue set level.

O ly
Lists of values for flexfields apply characterer format maskss after
selected. These format masks such as right-justify
right--justify andd zero
z
a a segment value has been
padding and maximum character
width are derived from the flexfield

l & On
d value set defini
feature to override the values specified
ecified in the value
inition.
nition. Use the W
definition.
v lue set definiti
definition.
Web ADI Setup Options

Note: If you are migrating


n a e
ngg from client server
serv
erver ADI, this
this provides
pr the equivalent functionality to

te r U s
the Zero Pad Accountt Values feature..

I n
c l e
r a
O
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Chapter 4 - Page 62
Uploading and Downloading Data from Web ADI Spreadsheets

y
d em
c a
e A
Manage Document Links
Uploading Data
c l
r a
After creating and modifying your spreadsheet, you can upload the data to Oracle Applications.
t,, you
To upload data:
O ly
& On
1. While viewing your spreadsheet, t, choose Upload ad Oracle menu. The Upload
d from the Orac
Parameters window appears. s.
l
a e
meters. Upload pa
2. Select the desired parameters. parameters
p rameters depen
depend on the integrator you select.

r n
stem administrator
Moreover, your system administrato

s
ator might disallo
disallow you from changing upload
parameters using

t e
ng the Web ADI:
3. Start the upload process. A
n U
I: Allow
Allow Set ParaParameters profile option.
After the upload process completes, the upload window indicates

e
her or not the uplo
whether
I
dentifying all rows
identifying
ccess
upload was successful. Web ADI returns messages to the spreadsheet
row containing invalid values. If the data in any rows are invalid, Web

c l
ADI does not uupload any of the data in the spreadsheet. You must correct all errors to
successful upload the spreadsheet. Any errors that occur during the upload of a multi-
successfully

r a w
sheet workbook will also be displayed in a Summary Worksheet. The Summary

O N
Note:
W
Worksheet enables you to see all errors and link to them.
Not all spreadsheets support upload.
Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 4 - Page 63
Downloading Data
Download enables you to refresh data that you have imported into your spreadsheet. This
option is available only if the spreadsheet contains imported data.
Note: Any new rows of data or other modifications that you have made on the spreadsheet will
be overwritten when you use Download to refresh the data. Some product integrators may not
allow refresh.
If you imported data from a text file, Download will not be available.

n l y
e O
U s

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Chapter 4 - Page 64
Identifying Web ADI Profile Options

y
d em
c a
e A
Identifying Web ADI Profile Options

c l
These profile options can be set to control specific Web ADI
ADI functions
functio in your system.

r a
O ly
l & On
n a e
t e r U s
I n
c l e
r a
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Chapter 4 - Page 65
Identifying Form Functions, Menus, and Responsibilities in Web
ADI

y
dem
c a
e A
c l
Identifying Form Functions, Menus, and Responsibilities ponsibilities in Web ADI
Form Functions
r a
installed with Web ADI, but with their O ly
This is a list of form functions that are automatically
eir
tomatically
matically created.
creat
ir associated prod
ated. Note
products.
roducts.
oducts.
Not that integrators are not

Menus
l & On
The Desktop Integration Menu

n a e
enu is creat
created
ed with
wi the following prompts:

• Define Layout out


t e r
• Create Documentt (BNE_ADI_ CR
ut (BNE_ADI_D
U s CREATE_DOCU
CREATE_DOCUMENT)
EFINE_LAYO
(BNE_ADI_DEFINE_LAYOUT)

I n
• Define Mapping (BNE_A EFINE_
(BNE_ADI_DEFINE_MAPPING)
anage Document Links (BNE_ADI_LOB_MANAGEMENT)
• Manage

l e
• Setup Options (BNE_ADI_SETUP_OPTIONS)
c
r a
Responsi
Responsibility
S
Define Style Sheet (BNE_ADI_DEFINE_STYLESHEET)

O • The Desktop Integration responsibility is created with the Desktop Integration Menu.

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Chapter 4 - Page 66
Overview of Importing Journal Entries

m y

A c
Overview of Importing Journal Entries
About Journal Import
c l e
• Use Journal Import to integrate information on from
from other applications
app
pp such as payroll,
accounts receivable, accounts payablee and fixed ts with your General Ledger
fixed assets
application. For each accounting period, you can import
jour
systems, then review, update and post the journal urnal
ur
im

n l y
accounting data from these feeder
accou
rnal entries. You can also use Journal Import

ltiple O
rom your previous
to import historical data from previou
previous accounting system.
tiple interface tables.
import data from multiple
a
n se
tab
ables. This enables
sy General Ledger lets you
enabl you to customize interface tables

t e r
equirements. Eac
to your specific requirements.

U
ach particul
Each particular
ar ssou
im
source/group ID combination will only have
terface table at a time. Journal import
data in one interface will process data from one table at a

n
time.
• To import
I
port subledger and feeder system

e
ste data to General Ledger:

c l
currenc
Gene Ledger to accept Journal Import data by defining your ledger,
- Set up General
currencies, accounts, journal sources, and categories. You should also run the

r a Op
Optimizer program, and define your concurrent program controls.
- Export data from your feeder system and populate the GL_INTERFACE table. Note:
O If you use reporting currencies and Oracle subledger systems, you must post to

Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 4 - Page 67
General Ledger from each subledger multiple times. Post first using your primary
subledger responsibility, which transfers amounts denominated in your functional
currency. Post next using each of your subledger reporting responsibilities, which
transfers amounts denominated in your reporting currencies.
- Run Journal Import. If your import program converts your journal entries from other
sources into the required data format, and all of the data is valid in your General
Ledger application, then Journal Import should run successfully the first time.
However, if you load data into the GL_INTERFACE table which is not valid in your
General Ledger application, Journal Import informs you of the specific errors on the
Journal Import Execution Report. Note: If you use reporting currencies and Oracle
subledger systems, and have chosen not to run Journal Import automatically when
posting amounts to General Ledger from your subledgers, you must run Journal
Import manually in your primary ledger and in each of your reporting ledgers.
- Use the Journal Import Execution Report to review the status of all import journal
entries. The Journal Import Execution Report prints a line for each journal entry
source from which you are importing journal entries.
- If you encounter relatively few Journal Import errors, you can correct the data in the
GL_INTERFACE table.
- If you encounter several Journal Import errors, you should delete the Journal Import
data from the GL_INTERFACE table, and correct the information in your feeder
system before rerunning Journal Import.
- Review the journal entries created by Journal Import before you post them.
- Post your Journal Import journal entries.

n l y
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U s

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Chapter 4 - Page 68
Importing Descriptive Flexfields

y
d em
c a
e A
Importing Descriptive Flexfields

c
Importing descriptive flexfields is optional.l
r a
You can choose to import descriptive flexfieldss with or without validation. If importing with

O ly
validation, Journal Import creates journal lines
If you want to import descriptive flexfield
ines only if validation
field information
xfield information
dation succeeds.
valid
on from Oracle subledgers, you must run
cle
Journal Import separately in Oracle
l & On
le General Ledger
Ledge
ger using the Imp
Import Journals window. Choose

a e
ds with or without
to import descriptive flexfields withouut validation.
Note: You should always
nes.
corrupting journal lines.
r n
yss import descriptive
descript

s
ptive flexfield
flexfield information
inf with validation to avoid

n t e U
If you want to create summary jjournal
nal lines,
lines, yo
you cannot import descriptive flexfields.

e I
c l
r a
O
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Chapter 4 - Page 69
Importing Journals

y
d em
c a
e A
Importing Journals
(N) Journals > Import > Run
c l
r a
To run journal import from General Ledger, navigate avigate
avigate to the Im
Import Journals window. Enter the
Imp

O ly
source. You can choose No Group ID, All Group IDs,
list of values for this field to determine if the Group
IDs, or sp
Group ID
specific Group IDs. You can use the
D exists in the interface table. Then select
the Import button to start the import

l & On
ort
rt program.

a e
Note: Oracle subledgers create te a report when the
t transfer is rurun from the subledger that
displays the Journal Import
locate the Group ID.
r n
ort Group ID. You

s
ou can view the output
o in the Request window to

urnal Import in parallel


You can run Journal

n t e U
ppa allel for several
seve sources as long as each request corresponds
severa

I
to a unique Source/Group ID combination. nation. TThe maximum number of combinations you can run
me is 20.
at one time

cl e
acle General Ledger
Oracle
U
User
Led
<Optional User-Entered
names the created batch with the following naming convention:
Reference><Source><Request ID><Actual Flag><Group ID>

r a
Suspense Posting

O
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Basic Journal Entries


Chapter 4 - Page 70
• If suspense posting is enabled for your ledger, select the Post Errors to Suspense check
box. Journal Import posts entries with invalid account combinations to a predefined
suspense account or accounts, if you have defined one for each journal source and
category. Typical account errors are:
- Detailed posting not allowed.
- Account disabled for this date.
- Disabled account.
- Account code combination is not valid.
- Account code combination ID does not exist.
• If you choose not to post errors to a suspense account, Journal Import rejects any
source/group ID combination with account errors.

m y
d e
ca
e A
c l
r a
O ly
l & On
n a e
t e r U s
I n
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r a
O
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Chapter 4 - Page 71
Multi-Table Journal Import

y
d em
c a
e A
Multi-Table Journal Import
Using Multi–Table Journal Import
c l
r a
• General Ledger provides you with the Journal rnal Import PackPackage

GL_INTERFACE_CONTROL table. O ly
(GL_JOURNAL_IMPORT_PKG) to create a new inte
able.
ble. In addition,
interface
terface table and populate the
create your own procedures to
addition,, yyou can crea

dure.
automate the entire procedure.
l & On
populate your interface table with data and to launch
l Journal IImport. This enables you to

n a e
• Below are the steps to follow to use M Multi-Table Jour
Journal Import:
- Create a new

t e r
w interface table
NTERFACE table but
GL_INTERFACE
U s
le.
e. New interface tables must have the same columns as the
table.
ut you can aaddd more if your needs require.
opulate the new iinterface table
- Populate
I n able wwith data.

e
- Populate the GGL_INTERFACE_CONTROL table with one record for each

cl source/g
source/gro
source/group ID combination that was put into the interface table. Specify a table
nam that the data is to be retrieved from for each combination. Specify what should
name

r a b done with the data once it has been processed.


be

O
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Basic Journal Entries


Chapter 4 - Page 72
- Start Journal Import using the Import Journals window. Specify each of the
source/group ID combinations that you want to import. If there are multiple tables,
Journal Import will be launched multiple times.
- If Journal Import indicates that the data is erroneous, then correct the data using the
Correct Journal Import Data window or delete it using the Delete Journal Import Data
window. If you choose to correct it, then start Journal Import again using the Import
Journals window.

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Chapter 4 - Page 73
Journal Import Group By Effective Dates Description

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Journal Import Group By Effective Dates Description
Journal Import now provides an option to automatically
tion
journal lines into journal entries
cally group journa

r a
based on effective dates. This functionality wass previously only available to customers using
average balance processing.
Through a new profile option called GL O ly
L Journa Import:
Journall Importrt: Separate JJournals by Accounting
ort:

l & On
ournal lines into
Date, you can choose to separate journal
dates, even if using a standard ledger. This incl
o separate
s journal
journals by different accounting
cludes journals or
includes originating from Oracle subledger
applications.
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Chapter 4 - Page 74
Journal Import Group By Effective Dates Benefits

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Journal Import Group By Effective Dates Benefits
By grouping and monitoring business transactions by date, rather tha than by accounting period:

r a
• You have greater flexibility in how you want antt to account for your business transactions.

O ly
You can account for them by effectivee date or by accou
• You facilitate financial auditing and compliance
accounting
compliancee with
ounting period.
w the new Sarbanes-Oxley Act.
• For DBI customers, you have
l & On
ve better information
informat
informmati
ation
on that is upda
updated on a daily basis. This

n a e
tter business decisions
enables you to make better deci
cisions and react more quickly to opportunities.

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Chapter 4 - Page 75
How to Set Up Journal Import Group By Effective Dates

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How to Set Up Journal Import Group By Effective Dates

c
1. Set the profile option called GL Journal Import: Journals by Accounting Date.
t: Separate Journa

r a
- If set to Yes, journals that pass the GL_INTERFACE
L_INTERFACE ttable via Journal Import will be

O ly
separated into separate journals byy accounting date
- If set to No, journals will be grouped by accounting
acco
date.
ate.
period.
counting period

l & On
cess.
2. Run the Journal Import process.

n a e
hat originated from
Note: If you want journals that fro Oracle subledgers
suble to be separated by

r
accounting date, you mustust set this profile
file option
option for eac
each Oracle subledger application.

te U s
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Chapter 4 - Page 76
Using Journal Import Group By Effective Dates

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Using Journal Import Group By Effective Dates

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If you have two journal lines in the same accounting g period but with different effective dates,

r a
by setting the profile option to Yes, you can create
has a different effective date. Both journals wi
eaate two separate jjournals; one for each line that
will grouped
ouped in the same journal batch.
ll still be grou
O ly
By setting the profile option to No, thee lines will be gro
grouped accounting period and placed
rouped by acc

l & On
rrent
rrent functionality
in the same journal. This is the current functiona ity for
for standard le
ledgers.

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Chapter 4 - Page 77
Importing Journal References

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Importing Journal References

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You can import subledger transactions into Generall Ledger in detail. The Journal Import

r a
process creates one journal entry line for every transaction line in the subledger.

journal entry information when you runO ly


To reduce the size of journal lines and speed ed the import process,
Import:
unn Journal Import rt:
pro
rocess,
roc ess, you can choose to summarize

• Select Create Summary Journals


l & On
nals check box to o have Journal
Journal ImImport summarize all

a e
transactions for the samee account, period, d, and currency
currency into
in one debit and credit line.
• When Journal Import ort
r n
rt creates summary

s
summa
ost. However, you
information is lost.
mary journal
journa lines
yo can preserve
lines, all mapping back to the source
preser transaction detail for summary journal

t e U
GL_IMPORT_R FERENCES table:
lines in the GL_IMPORT_REFERENCES

n
t
elect the Import Journal
- Select
I
each journal entry
e
J eferen
References check box in the Journal Sources window for
en source you wish to preserve. (N) Setup > Journal > Sources.

c l
- Oracle Ge General Ledger populates the GL_IMPORT_REFERENCE table with one
record for every transaction in your feeder system.

r a cann import descriptive flexfields if you create summary journals.


You cannot

O
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Basic Journal Entries


Chapter 4 - Page 78
Note: If you want to be able to drill down to subledger transaction lines, such as Payables
invoices, from General Ledger, select the Import Journal References check box for the
subledger source in the Journal Sources window whether you transfer in summary or detail
from subledgers.

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Chapter 4 - Page 79
Reviewing Journal Import Data

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Reviewing Journal Import Data

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Review the status of accounting data imported into Oracle General
Gene L Ledger using the Journal

found. r a
Import Execution Report. Use the Error Key sectionction on the report
repor to identify the types of errors

O ly
The journal import program rejects all transactions of a Source
Source and Group ID if any of its
journals have errors.

l & On
a e
cation process too identify
Use the journal import verification i cor
and correct journal import errors.

r n s
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Chapter 4 - Page 80
Journal Import Verification Process

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Journal Import Verification Process
Validation When Using Open Interfaces
c l
r a
• Journal Import validates all of your data before
efore it creates jjournal entries in General
create jo

O ly
Ledger. If you allow suspense posting
invalid accounts to the suspense account.
g for yourr ledger,
ccount. Journal
Journal Import
I
Journal Import assigns lines with
r, Journ
rejects all other invalid lines, and
rejec
they remain in the GL_INTERFACE
Correct Journal Import Data
l & On
RFACE table, where
wh you can correct
ata window or inn your feeder systems.
sys
cor them online in the
Journal Import also prints

n a e
your error lines in thee Journal
Jourrnal Importt E
Execution repor
report.
ion
Journal Level Validation

t e r U s
port validates the following
• Journal Import ollowing attributes
attrib to ensure that your journals contain the
riate accounting ddata:
appropriate
combI n
- Account combinations

l e
- Unbalanced
c
Unbalanc journal entries

r a Perio
- Periods
- Foreign currency errors

O - Budget information

Copyright © Oracle Corporation, 2007. All rights reserved.

Basic Journal Entries


Chapter 4 - Page 81
- Encumbrance information
- Other miscellaneous items
Correcting Journal Import Errors Online
• If your Journal Import results in relatively few errors, you can make online corrections to
the data that was rejected, then rerun Journal Import to import the corrected data.
(N) Journals > Import > Correct
• The Correct Journals Import window displays each field of the GL_INTERFACE table.
From this window you can query import lines that have a status of Error or Corrected.
• Make your corrections.
- If you are correcting Accounts data, you must enter an account segment value or enter
a valid Code Combination ID.
- Segment values override Code Combination IDs, so you must first clear all displayed
segment values before changing the displayed Code Combination ID.
• The Status changes to Corrected after you save your changes.
• Select the Import Journals button to return to the Import Journals window.
• Deleting Journal Import Data to Correct Errors
• If you encountered a high number of errors from the Journal Import process, you should
delete all information from the interface table and rerun Journal Import after correcting the
errors.
(N) Journals > Import > Delete
• If you delete import data that originated from an Oracle subledger, you must correct the
m y
data in the subledger and reimport it from the original source:
d e
- Delete all the import data for your journal entry source and group
GL_INTERFACE table.
oup
up ID from the

ca
- Correct the errors in feeder system.

e A
l
- Repopulate the GL_Interface table.
- Rerun Journal Import.

a c
r
Caution: Do not delete journal import data from

O ly
m Oracle subledge

to Oracle General Ledger. These flags must be reset befo


subledgers such as Oracle Payables or
Oracle Receivables. The Oracle subledgers set flags to indica cate
ate the transactions have been sent
indicate
fore the tra
before transactions can be resent.

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Chapter 4 - Page 82
Using Journal Entry Sources and Categories

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Using Journal Entry Sources and Categories
(N) Setup > Journal > Sources
c l
r a
Journal entry sources indicate where your journal originate.
nal entries origina

O ly
General Ledger supplies a list of predefineded journal sources
Oracle subledger applications, such ass Assets or Payab
ces for journal
source
Payables.
ables.
j
jo entries that originate in

l & On
You can define your own journall sources
sources for non-on-Oracle
n-Oracle feeder ssystems.
non-Oracle
ecify whether too import
For each journal source, specify

n a e iim
mport detail reference
ref information for summary

r
Oracle subledger
journals imported from your Oracle subl
bledger applications.
applicatio This is required if you want to be

t e
ources, you can:
With journal sources,
U s
able to drilldown too the original subledger
subl
sub
bledger transaction
transactio from balances in General Ledger.

• Define
I n
ne intercompany and suspensee aaccounts for specific sources.

cl e AutoPos program for specific sources.


• Run the AutoPost
jour
journ
• Import journals by source.

r a
• Freeze journals imported from subledgers to prevent users from making changes to any
jou
journals that have been transferred to General Ledger from that source. This ensures that
O transactions from your subledger systems reconcile with those posted in General Ledger.

Copyright © Oracle Corporation, 2007. All rights reserved.

Basic Journal Entries


Chapter 4 - Page 83
• Report on journals by source using the Foreign Currency Journals or General Journals
reports.
If you have journal approval enabled for your ledger, you can use journal sources to enforce
management approval of journals before they are posted.
If you are using average balance processing, select an effective date for your journal source.
For more information, refer to the Oracle General Ledger User Guide or 11i General Ledger
Financial Management Advanced Topic Average Balance Processing.
Journal Categories
(N) Setup > Journal > Categories
• Journal categories help you differentiate journal entries by purpose or type, such as
accrual, payments, or receipts. When you create journal entries, you must choose the
default or specify a category.
• Using categories, you can:
- Define intercompany and suspense accounts for specific categories.
- Use document sequences to sequentially number journals by category.
- Define journal categories for accruals and estimates. Use these categories when you
define criteria for AutoReverse and AutoPost.
• Journal categories appear in standard reports, such as the General Journals report. You can
run reports by category, by source, or category and source. For example, for month end
ha
close, you might run a report listing all journals that were created for the period with
category of accruals. This way you can review the accrual entries created beforee finalizing
m y
e
your close.
Caution: Oracle General Ledger does not have a standard report showing Journal ournal
urnal Import
nformation.
reference information. You must create a custom report to access this information.
a d
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Chapter 4 - Page 84
Setting Profile Options

m y

A c
Setting Profile Options

c l e
Journals: Allow Multiple Exchange Rates - Controlss whether to allow multiple conversion
rates within a journal entry.
Journals: Allow Posting During Journal Entry ntry whether you can post a manual
ry - Controls wh
whethe

l y
journal entry from the Enter Journals window.
Journals: Default Category - Specify
& On
cify the default
default category
ca for man
manual journal entries.
l
a e
Journals: Enable Prior Periodd Notification - Controls
C whethe
whether General Ledger notifies you
journal for a prio
when you are entering a journal
r n s
rior
ior period.
prior

the same journal


tical and Moneta
Journals: Mix Statistical

t e M

U
al line as monetary

n
oneta
etary
tary - Controls w
Monetary
monetar amounts.
mounts.
whether you can enter statistical amounts in

e
al method.
reversal I
Journals: Override Reversa
Reversal Method - Con Controls whether you can override the specified default

c l
r a
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Chapter 4 - Page 85
Summary

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Chapter 4 - Page 86
Summary

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Chapter 4 - Page 87
Summary

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Chapter 4 - Page 88
Using Accounting Setup
Manager
Chapter 5

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Chapter 5 - Page 1
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Chapter 5 - Page 2
Using Accounting Setup Manager

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Chapter 5 - Page 3
Objectives

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Chapter 5 - Page 4
Objectives

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Chapter 5 - Page 5
Creating Accounting Setups

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Creating Accounting Setups

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The Accounting Setup Process consists of three main
in steps and are ddescribed in the table
above:
r a
O ly
1. Create an accounting setup structure.
2. Update accounting options.

l & On
tup.
3. Complete the accounting setup.

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Chapter 5 - Page 6
Accounting Setup Prerequisites

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Accounting Setup Prerequisites
Complete General Ledger Setup Steps
c l
r a
• To create accounting setups, complete the General
General Ledger prerequisites, such as defining a

O ly
chart of accounts and accounting calendar.
Optionally, define additional Subledger
ndar.
dger Accountingng Methods

l & On
• To use additional subledger accounting me methods
meth Standard Accrual or Standard
thods other than S
Cash, define them using

n a e
g Subledger AAccounting
Acco
counting .

r
• When defining ledgers Accounting
gers in Accountinting Setup Manager, assign a subledger accounting
Setup Manag

sources.
nning
ning to use Subledger
method if planning

t e U s
Suble
ledger Accounting
Accoun
Accountin to integrate data from transaction

• Perform
I n
rm this step for eeach subledger
ger accounting
a method.
ounting
unting Setup Manager
Accounting

c l e Man
Entitie Pages
• Legal Entities
provides the following pages:

r a Accoun
• Accounting
Ac
• Accounting
Setups Pages
Options Pages
O
Copyright © Oracle Corporation, 2007. All rights reserved.

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Chapter 5 - Page 7
Create Accounting Setup Demonstration

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Chapter 5 - Page 8
Legal Entities Pages

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Legal Entities Pages
The Legal Entities page enables you to:
c l
r a
• Create new legal entities and assign specific
fic balancing segment
balancing segm g values to legal entities to

O ly
help identify legal entities during transaction
advantage of all of the legal entity-related
processing
saction processin
y-related features,
and reporting. You can take full
ing and
Intercompany Accounting.
es, such as Int

l & On attri
attribu
butes, and make updates to the legal entities.
• Query existing legal entities, view their attributes,
• Update balancing segment

n a e
ent values assigne
gned
ned to legal entit
assigned entities.

r
• Enter an end-date to deactivate a legal
leg
egal entity.

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Chapter 5 - Page 9
Accounting Setups Pages

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Accounting Setups Pages

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You can perform the following in the Accounting Setups etups page:
• Create new accounting setups.
r a
ledger. O ly
• Query existing accounting setups (namedamed
med after primary
after the prim ledger) by legal entity or
rimary le

l
• Update the accounting options
& On
ons for an accounting
accoun
unting
unt ing setup to mo
modify the related setup
components.

n a e
r
• Query existing legalal entities and vie
iew
ew their attribut
view attributes.

e
ssociated primaryy ledger for any legal entity, ledger, operating unit, and
• Identify the associated
t
reporting currency.
U s
• View
I n
w the status of acc ups
accounting setups.

l
ounting Options Pages
Accounting

c e
After creating an accounting setup structure, update the accounting options immediately after

r a th structure or later.
creating the

O
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Chapter 5 - Page 10
Accounting Setup Manager Checklist

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Chapter 5 - Page 11
Accounting Setup Manager Checklist (continued)

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Chapter 5 - Page 12
Legal Entities Overview

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Legal Entities Overview

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Define one or more legal entities using Accounting Setup Manager'
Manager's Legal Entities tab if

r a
planning to assign legal entities to accounting setups.
etups.

O ly
You can also define legal entities using Legal
Accounting Setup Manager are the same
egal Entity Config
Configurator.
figurato The Legal Entity pages of
me as the Legal Entity
E pages in Legal Entity

entities using Accounting Setup


l & On
Configurator. The only difference is that you can assign
up Manager.
as balancing segment values to legal
balancing

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Chapter 5 - Page 13
Balancing Segment Value Assignments

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Balancing Segment Value Assignments

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Assigning balancing segment values to legal entitiess is optional; how however, it is strongly

r a
recommended that you assign specific balancing
identify legal entities during transaction processing
segment values to each legal entity to help
g segment
ocessing and reporeporting.
porting This is particularly
O ly
important for accounting setups that usee the accounting g setup
s where multiple legal entities
wher
share the same primary ledger.
By assigning balancing segment
l & On
ent
nt values to legal
gal
al entities,
entities, you ca
can also take advantage of all of
the legal entity accounting
n a e
g features availabable, such as inter
available, intercompany accounting.

t e r U s
If you do not assign any balancing seg
segment values will be available ffor
egment values to your legal entities, then all balancing
segment
or transaction pprocessing.
ltiple
tiple value sets for
If using multiple
I n fo the balancing
alancing segment across charts of accounts, be sure to
he correct value sset to the legal entity. Once assigned, you cannot remove the value set
assign the
from

c l e
m legal entities. However,
balancing segm
segme
H there is no harm in assigning the wrong value set or assigning
segment values for the wrong value set; the system will ignore it during transaction

a
processing.
r
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Chapter 5 - Page 14
Using Balancing Segment Values for Transaction Processing

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l
Using Balancing Segment Values for Transaction Processing

c
Any balancing segment values assigned to a legal entity automatically assigned to the legal
ntity are autom
automati

r a
entity's ledger when completing the accounting setup.

O ly
When entering transactions using Oracle subledgers,
values that are assigned to the legal entity.
ntity.
tity.
ubledgers,
ubled only the valid balancing segment
gers, use on

When entering journals in General


l & On
al Ledger, useuse only
onl
nly the valid bala
balancing segment values

a e
assigned to the ledger's legal entities
tities and the ledger
le itself.

r n s
segment values will be available to en
assign
If no balancing segment values are assignedgned to the
th legal entities or ledgers, then all balancing
ter transaction
enter transactions and journal entries.

n t e U
e I
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Chapter 5 - Page 15
Completing Accounting Setups

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Completing Accounting Setups

c l
If you have an accounting setup with multiple legal entities assigned and specific balancing

following violations exist: r a


segment values assigned to legal entities, you cannot annot complete the
th accounting setup if the

O ly
• overlapping balancing segment values alues assigned
assigned to entities for the same
o the legal en
accounting setup

l & On
a e
• balancing segment values ess assigned to som
ome, not all, of th
some, the legal entities assigned to the
same accounting setup

r nup
Accounting Setup Manager does not
s ot check for overl
ov
overlapping balancing segment values assigned

n t e U
to legal entities in different accou ting setups. T
accounting Therefore, ensure that the correct balancing

I
segment valueslues
ues are assigned to legal entities in all accounting setups.
Before the accounting setupse is complete, delete and add balancing segment values to legal

l e
tities
ities at any time.
entities

c
tim After completing the accounting setup, you cannot delete balancing
segment values from legal entities; you can end date the balancing segment value to prevent

r a it
the use of it.

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Chapter 5 - Page 16
Designating the Balancing Segment for a Chart of Accounts

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Designating the Balancing Segment for a Chart off Accounts
It is recommended that you designate the balancing segment of the cchart of accounts as the

r a
legal entity or company segment. If there are multiple
accounts, limit the number of value sets you
ultiple legal entities
entit that use different charts of
bbalancing segment to ease
u define for the balan
ba
O ly
maintenance efforts. This allows you too share value sets
ts across mu
multiple charts of accounts and

accounts.
l & On
alues for each legal
assign unique balancing segment values leg
egall entity that is consistent across charts of
ega

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Chapter 5 - Page 17
Defining Legal Entities Using Accounting Setup Manager

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Defining Legal Entities Using Accounting Setup Manager
Use the Create Legal Entity page to create legal entities.
ities.

r a
Prerequisites—The following prerequisites aree required only if you are planning to assign

O ly
balancing segment values to legal entities:
• define a chart of accounts

l
• define segment values for the
& On
he balancing segmgment
segment
Creating Legal Entities

n a e
t e r
2. Select Createe Legal Entity
U s
ntities page.
1. Open the Legal Entities

n
3. Enter all relevant fields ffor the Identification
ormation, and Bal
Information,
I Balancing Segment
dentifica
dentifi Information, Legal Address, Additional
en Value Assignments.

c l e
4.. Select Apply or click Save and Add Details to enter additional information for the legal
entity that in
includes the following:

r a re
- registrations

O - establishments
5. In the Balancing Segment Value Assignments region, click Add Value Set.
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Using Accounting Setup Manager


Chapter 5 - Page 18
6. Select a value set from the list of values. Only value sets that use the balancing segment
value qualifier are displayed.
7. To assign balancing segment values for the value set, click Add Balancing Segment
Value.
8. Select one or more balancing segment values to assign to this legal entity. You cannot
assign parent values.
Note: Be sure to assign unique balancing segment values to each legal entity. You cannot
complete the accounting setup if multiple legal entities assigned to the same accounting setup
have overlapping balancing segment values assigned or only some of the legal entities have
balancing segment values assigned.
9. To make this value available for a limited time, enter a start date and/or an end date. Start
and end dates can be changed at any time.
10. Select Apply.

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Chapter 5 - Page 19
Updating Balancing Segment Values

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Updating Balancing Segment Values

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Update the balancing segment value assignments for orr the legal entity in one of the following
pages:
r a
• Legal Entities tab
O ly
• Accounting Options page after assigning
ssigning legal entities
legal ent accounting setups. Add value
ntities to accou

l & On
sets and balancing segment values to legal entities
ent
ntities at any tim
time.
Prerequisites

n a e
r
• Define a legal entityty

associated
t e U
d with the legal en
s
• Assign a legall entity to an accoounting setup
accounting setup to automatically assign the value set
entity'ss ledger.
To update
I n
te balancing segment
segm valuess for
fo legal entities:

c l e
1. Open the Legal E
B
Entities page and search for a legal entity.
2. Select the Balancing Segment Value Assignments sub-tab.

r a
3. To upd
update the balancing segment value assignment, click Update.

O
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Chapter 5 - Page 20
4. Add one or more value sets. Once assigned, you cannot remove the value set. If you
accidentally assign the wrong value set that is not associated with any of the legal entity's
ledgers, the invalid value set will be ignored during transaction processing.
5. Add or remove balancing segment values. If the legal entity is assigned to a complete
accounting setup, you cannot remove its balancing segment values. You can disable them
by entering an end date.
6. Select Apply.
To update balancing segment values for legal entities that are assigned to accounting
setups:
1. Open the Accounting Options page for an accounting setup.
2. In the Legal Entities region, select the Update Balancing Segment Values icon for a legal
entity. The value set associated with one or more of the legal entity's ledgers will be
automatically assigned.
3. Add or remove balancing segment values for the appropriate value set. If multiple value
sets are assigned to the legal entity, assign the same balancing segment value across value
sets.

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Chapter 5 - Page 21
Creating Accounting Setup Structures

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Creating Accounting Setup Structures

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The accounting setup structure defines the framework
rk or skeleton of an accounting setup.

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Chapter 5 - Page 22
Creating Accounting Setup Structures (continued)

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Chapter 5 - Page 23
Creating Accounting Setup Structures (continued)

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Chapter 5 - Page 24
Creating an Accounting Setup

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Creating an Accounting Setup
Assigning Legal Entities
c l
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• Assigning legal entities to accounting setupsups is optional. A Assign legal entities if you are

O ly
planning to use Oracle financial subledgers
transaction processing. Also, assign
edgers
dgers that require legal entity context for
ire a leg
planning to use legal entity
gn legal entitiess if you are pla

l & On
rcompany accoun
specific features, such as intercompany unting.
accounting.

a e
• If creating legal entities from the Assign Legal
L Entities page,
p you are not creating a

r n
complete definition of your legal entit
from the Legal Entities tab.
s
ntity.
tity. Complete
entity. Complete th the definition of the legal entity later

unting Represent
Defining Accounting

n t e U tions
Representations
fy the ledger attributes
• Specify
I
counting represen
accounting
e
attrib for the pr
pri
primary ledger. The primary ledger acts as the primary
representation. Optionally specify the ledger attributes for one or more

c l ledg to represent primary ledger transactions in a different chart of accounts,


secondary ledgers
cu
calendar, currency, subledger accounting method, and/or ledger processing options.

r a ma
m
• To maintain additional currency representations of primary or secondary ledgers, assign

O re
reporting currencies to them.

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Chapter 5 - Page 25
Note: Add secondary ledgers and reporting currencies to accounting setups at any time. Before
completing the accounting setup, you can delete secondary ledgers and reporting currencies.
After completing the accounting setup, you can only disable the conversion of reporting
currencies and secondary ledgers.
To define accounting representations:
1. Open the Define Accounting Representations page from the Assign Legal Entities page.
2. Specify primary ledger attributes for the required fields.
Note: You cannot assign a calendar if it contains gaps between periods or it does not have a
full fiscal year defined.
3. Optionally assign a subledger accounting method if planning to use Subledger Accounting
to integrate data from Oracle financial subledgers or external feeder systems.
Note: Once you assign a subledger accounting method, you must always have a subledger
accounting method assigned. You can change the subledger accounting method at any time.
4. Optionally, specify the following secondary ledger attributes:
- name
- chart of accounts
- accounting calendar
- Currency
- subledger accounting method
5. Specify a Data Conversion Level.
6. Optionally, select the Add Reporting Currency icon.
m y
llowing currency
7. In the Add Reporting Currency page, enter a currency and one of the following
d e
conversion levels:
- Balance: maintains translated balances
ca
e
rting
ting currency usin
- Journal: maintains journals and balances in the reporting
A
using the General

l
Ledger Posting program

a c tion
- Subledger: maintains a currency representationion of the source ledger's subledger
journals, General Ledger journals, and balances using bo both Subledger Accounting and

8. Select Apply.
r
the General Ledger Posting program.

O ly
m.

Saving the Accounting Structure

l & On
counting
ounting Stru
1. Navigate to the Save Accounting cture
ure page from the Define Accounting
Structure
Representations page.
n
e.
a e
3. Click Finish.h.
t e r U s
ounting setup stru
2. Review the accounting ructure.
structure.

In
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Chapter 5 - Page 26
Completing Accounting Options

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Completing Accounting Options

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The Accounting Options page is displayed in a checklist complete the relevant setup
cklist format to co

r a
steps to make the accounting setup ready for entering
ntering transactions and journals.
tering transaction

O ly
Before entering transactions, complete all of the required setup
If using secondary ledgers, complete all
se steps for each accounting setup.
st
ed setup steps for the primary ledger
ll of the required

l & On
lowing ways:
Options page in one of the following
secondary
before completing the setup steps for the secondary ry ledgers Navigate
Naviga to the Accounting

n a e
ounting setup stru
• After saving the accounting tructure,
ructure, click De
structure, Define Accounting Options.
ng accounting setup
• Query an existing

t e r s set
counting Options icon.
Update Accounting
U
etup from the A
on.
Accounting Setups page, and then select the

I n
The name of the Accounting Options page is named after the primary ledger, such as
nting Options: <Name
Accounting <N of primary ledger>.

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Chapter 5 - Page 27
Updating Legal Entities

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Updating Legal Entities

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The Legal Entities region of the Accounting Options nss page allows you to do the following:

r
• View legal entities and make changes
a
• Update legal entities
O ly
& On
• Aadd legal entities
• Remove legal entities from
setup l
m one accountingg setup

a e
s tup and assign them to another accounting
se

r n s
ounting setup iss complete,
- Once the accounting c you ccannot remove any of its legal entities. To

- Once
n t e
disable a legal entity, end-
U
-date it.
end-date
cee you end-date a legal entity, yo
you cannot enter new subledger transactions against

e I Y can use the legal entity's balancing segment values to enter


the legal entity. You
journ entries in General Ledger. This allows you to enter adjusting entries
manual journal

c l th accounting close.
during the

r a - If yyou end-date a legal entity, end date its balancing segment value to prevent the use
of the balancing segment value for journal entries.

O • Assign unique balancing segment values to legal entities

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Using Accounting Setup Manager


Chapter 5 - Page 28
Note: If you use balancing segment values to represent legal entities, do not assign the same
balancing segment values to multiple legal entities that are assigned to different accounting
setups. Accounting Setup Manager will not prevent you from assigning the same values to
legal entities in different accounting setups.
• Remove balancing segment values
- You can only remove balancing segment values before the accounting setup is
complete. A balancing segment value removed from one legal entity can be assigned
to another legal entity within the same or different accounting setup.
• End-date balancing segment values
- You can end-date balancing segment values at any time. If you end-date a balancing
segment value, you cannot enter new transactions with dates after the end-date. You
can query historical transactions and report on the end-dated balancing segment
value.

n l y
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U s

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Chapter 5 - Page 29
Primary Ledger Setup Steps

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Primary Ledger Setup Steps
The primary ledger setup steps are:
c l
• Ledger Options
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• Reporting Currencies
O ly
& On
• Ledger Balancing Segment Value ue Assignments
• Subledger Accounting Options
• Operating Units l
ions

a e
r n
alancing Rules
• Intracompany Balancing
s
• Sequencing

n t e U
dary Ledgers
• Secondary
ompleting Accounting
• Completing
e I
Accou Setup

c l
r a
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Chapter 5 - Page 30
Ledger Options

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Ledger Options

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A ledger determines the chart of accounts, accounting currency, subledger accounting
ng calendar, curre

and legal entities. r a


method, and ledger processing options for each co mpany, legal eentity, or group of companies
company,

O ly
Each accounting setup requires a primary
ary ledger thatt ac main record-keeping ledger for
acts as the m
ma

l & On mai
m ain chart of accounts,
none or one or more legal entities that use your main
subledger accounting method, and currency too record
record and report
accou accounting calendar,
repo on all of your financial
transactions.
n a e
ional accounting
To maintain an additional

t e r U
To maintain an additional currencys
currency re
g representation,
representation, use secondary ledgers.
representatio
presentatio use reporting currencies.
representation,

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Chapter 5 - Page 31
Reporting Currencies

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Reporting Currencies

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To report on account balances in multiple currencies, reporting currencies to ledgers.
s, assign reportin

r a
Reporting currencies can only differ by currency
cy from source ledger and must share the
from their ssou

O ly
same chart of accounts, accounting calendar/period
ar/period
ar/pe combination,
riod type combina
com
ombina
method, and ledger processing optionss as their source ledger.
le
subledger accounting

l & On
ntained
tained at one off the
Reporting currencies can be maintained t following currency
cu conversion levels:
• Subledger

n a e
r
• Journal
• Balance
t e U s
I n
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Chapter 5 - Page 32
Ledger Balancing Segment Value Assignments

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Ledger Balancing Segment Value Assignments

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Optionally assign specific balancing segment valuess to ledgers to tra track non-legal entity-related

r a
transactions or adjustments using a specific balancing
ancing segment vvalue.

O ly
Note: Assign specific balancing segment values to all legal
before assigning a specific balancing segment
egment value too the
entities in an accounting setup
al entiti
t ledgers in the accounting setup.

l & On
Balancing segment values can be added to ledgers rs at any time.

ledgers.
n
etup is comp
• Before the accounting setup
a e complete,
te, you can rem
remov
remove balancing segment values from

t e r
g an end date.
by entering
U s
unting setup is complete,
• After the accounting co you can only disable the balancing segment value

I n segm
To assign balancing segment le
values to ledgers:

c l e
1. Open the Accoun
Accounting Options page.
Up
U
2. Select the Update icon for the Balancing Segment Value Assignments step.

r a
3. View the
acc
th balancing segment values assigned to the legal entities associated with the
accounting setup in the Legal Entity Assignment region.

O 4 In the Ledger Assignment region, enter a balancing segment value.


4.

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Chapter 5 - Page 33
5. Optionally, enter a start and end date to make the value effective for a limited time.
To remove balancing segment values:
Balancing segment values can only be removed from ledgers before the accounting setup is
complete.
1. Open the Ledger Balancing Segment Value Assignments page. You access this page by
updating the Balancing Segment Value Assignments step for the ledger.
2. To remove balancing segment values, click the Remove icon for each balancing segment
value.
To disable balancing segment values:
Disable balancing segment values by entering an end date for the value. You cannot use the
balancing segment value to enter new transactions or journals after the end date. You can only
use the value for reporting and viewing historical data.
1. Open the Ledger Balancing Segment Value Assignments page. You access this page by
updating the Balancing Segment Value Assignments step for the ledger.
2. To disable a balancing segment value, enter an end date.

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Chapter 5 - Page 34
Subledger Accounting Options

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Subledger Accounting Options

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If you assigned a subledger accounting method to your our ledgers, the Subledger
S Accounting

r a
Options step will be displayed with a status of Complete.

displayed. O ly
If you did not assign a subledger accounting
ng method to your our ledger, then this step will not be
ur ledg

l & On
me from the
You can update this step at any time the Acco
ccounting Options page. Subledger Accounting
Accounting

a e
Options allow you to define how to generate
generate the
th accounting eentries from subledger
transactions.

r n s
ledgers assigned
Note: All of the subledgers d to a ledgerr inhe
inherit its subledger accounting method from
that ledger.

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Chapter 5 - Page 35
Operating Units

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Operating Units

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You can assign operating units to the primary ledger err to partiti
partition subledger transaction data
on subl

r a
when multiple operating units perform accounting ng in the context of one or more legal entities.
ing

O ly
If using an accounting setup that has legal enti
entities
ties assigned,
displayed. The status for this step will be Not Started.
ed, Operating Units step will be
d, the O

l & On
You can update the Operating Units nits step at any
any time
tim
ime from the Acc Accounting Options page. You

a e
do not have to complete this step to completee youry accounting setup.

r n
erating units in the
Note: If you defined operating

s
those operating unitss will be automatically
automat
automa
th Define Organ
atically assigned
Organization window in Oracle HRMS, then
assigned to the appropriate primary ledger in
Accounting Setup
t e
up Manager.

n U
ites
Prerequisites

e I
ollowing prerequisites
The following prerequi are required if you plan to assign operating units to a primary
dger in the Accou
ledger
c l Accounting Setup Manager:

r a
• Define le
Com
• Complete
legal entities and assign them to accounting setups
primary ledger setup steps

O
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Chapter 5 - Page 36
To Define and Assign Operating Units:
1. Open the Operating Units page.
2. Select Add Operating Unit to both create and assign an operating unit to the primary
ledger.
3. In the Add Operating Units page, enter the following:
- Name: The name of the operating unit
- Short Code: The short name of the operating unit
- Business Group: The highest level in the organization structure, such as the
consolidated enterprise, a major division, or an operation company that secures
human resources information
- Default Legal Context: One of the legal entities assigned to the accounting setup to
act as the default legal context
4. Alternatively, you can create operating units by clicking Open Organization Form to open
the Define Organization window in Oracle HRMS. When you define your operating unit
and assign it to a primary ledger and default legal context, you will be able to view the
operating unit assignment from Accounting Setup Manager.
5. Click Apply or Add Another to define and assign multiple operating units.
6. To mark the Operating Units step complete, select Complete.
Note: Once you add an operating unit to a primary ledger, you cannot remove it. You can
prevent the use of that operating unit by not assigning it to a Security Profile in Oracle HRMS.

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Chapter 5 - Page 37
Intracompany Balancing Rules

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Intracompany Balancing Rules

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If you enabled the Intracompany Balancing option for your ledger, th the Intracompany Balancing

r a
step will be displayed. The status for this step will be Not Started
Started.

O ly
Update the Intracompany Balancing step to
balancing segment values that are assigned
o define
define rules too bbalanc
gned to the sam
balance journal entries between
me legal entity or ledger.
same

l & On
Note: You do not have to completeete
te this step to complete
com
omplete your accounting
acc setup. You can

a e
rom the Accounti
update this step at any time from nting Options pag
Accounting page.

r n s
n t e U
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Chapter 5 - Page 38
Sequencing

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Sequencing

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Sequencing enables you to define accounting and reporting sequencing options for ledgers and
eporting sequenci

r a
reporting currencies. You can update this step att any time from tthe Accounting Options page.

O ly
Note: It is not necessary to complete this step
tep to completee your
y accounting
a setup.

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Chapter 5 - Page 39
Secondary Ledgers

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Secondary Ledgers

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Secondary ledgers represent the primary ledger's accounting
counting data in aanother accounting

r a
representation that differs in one or more of the following ways:
• chart of accounts
O ly
• accounting calendar/period type combination
• currency
l & On
• subledger accounting method

n a e
r
• ledger processing options

t e U s
dgers for supplementary
Use secondary ledgers supplem
mentary purposes,
purpose such as consolidation, statutory reporting,
or adjustments
mary n
ts for one or more

I
ary ledger for co
use a primary
mo legal entities within the same accounting setup. For example,
oun
corporate accounting purposes that uses the corporate chart of
unts and subledge
accounts

c l e subledger accounting method, and use a secondary ledger for statutory reporting
urposes that uses the statutory chart of accounts and subledger accounting method. This
purposes

r a
allows you to maintain both a corporate and statutory representation of the same legal entity's
transactio in parallel.
transactions

O Assig one or more secondary ledgers to each primary ledger for an accounting setup.
Assign

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Chapter 5 - Page 40
The secondary ledgers assigned can only perform the accounting for the legal entities within
the same accounting setup.
Note: If an additional ledger is needed to perform accounting across legal entities or ledgers in
different accounting setups, use a ledger in an accounting setup with no legal entity assigned.
This can be used for multiple purposes, such as performing management reporting or
consolidation across multiple legal entities.

n l y
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U s

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Chapter 5 - Page 41
Secondary Ledgers

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Secondary Ledgers
Data Conversion Levels
c l
Conversion Rules
r a
secondary ledger: O ly
The following conversion rules are used too convert
onvert data from
rom the primary ledger to the
fro

l
• Chart of Accounts Conversion:
& On
ion:
on: If the secondary
second
ndary ledger uses a different chart of accounts
from the primary ledger,

n a e
r, a chart of accounts
mapping accounts or entire account
accou
ounts mapping
ntt segments
s
maapping is used to provide instructions for
fr
from tthe primary ledger to the secondary
ledger.

t e r U s
• Calendar Conversion: If the secondary
condary ledger
ledg uses a different accounting calendar from

eriod
imary
mary ledger, the journal
the primary
I n
riod in the second
period
j
secondary ledger.
ffectiv date determines the corresponding non-adjusting
effective

c l e
• Currency Conv
ledger, cur
Conversion: If the secondary ledger uses a different currency from the primary
currency conversion rules are required to instruct the system on how to convert

r a fr
data from the currency of the primary ledger to the currency of the secondary ledger.

O J
• Journal Conversion (Used by General Ledger Posting only): To select the journals for
transfer to the secondary ledger based on journal source and category combinations. The
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Chapter 5 - Page 42
General Ledger Posting program uses these rules to determine which journals to
automatically transfer to the secondary ledger during posting.
Note: The above conversion rules do not apply to Adjustments Only level secondary ledgers
because they must share the same chart of accounts, accounting calendar, and currency as the
primary ledger.

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Chapter 5 - Page 43
Secondary Ledgers

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Secondary Ledgers
Subledger Level Secondary Ledgers
c l
r a
The subledger level secondary ledger maintains nss an additional ac
accounting representation of the

O ly
subledger journals, journal entries, and balances.
maintained using both Subledger Accounting
lances. subledger
G
ledgerr llevel secondary ledger is
ances. The subled
ledge
ounting and the General Ledger
Ledg Posting program.

l & On
By assigning two different subledgerdger accounting methods
m to the pprimary and secondary ledger,

a e
unting rules to sim
you can use Subledger Accounting imultaneously
ltaneously ac
simultaneously account for the same legal entity

r n
rs. This allows yo
transaction in both ledgers.

s
ansaction and have
a single subledger transaction hav
you to maintain m
ave the different
multiple accounting representations of
different ssubledger journals produced in each
ledger.

n t e U
I
edger
dger Accounting integrates
Note: Subledger tes data from both Oracle and non-Oracle transaction
sources. For a list of tran
transaction sources that integrate with Oracle Subledger Accounting,

menu.
cl e
ry them in the Subledger
query Su Application page available from the Subledger Accounting setup

r a enter
When entering subledger transactions using Oracle financial subledgers that integrate with
Subledg Accounting, Subledger Accounting automatically generates the appropriate
Subledger
O
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Chapter 5 - Page 44
accounting entries to both the primary and secondary ledgers in General Ledger based on the
accounting rules defined for a particular subledger accounting method.
Journal Conversion Rules
By default, the following types of journals are replicated to the secondary ledger using General
Ledger Posting, not Subledger Accounting:
• journals created by Oracle subledgers that do not use Subledger Accounting
• manual journal entries entered in the primary ledger
• journals from spreadsheets or non-Oracle systems that were entered via the primary
ledger's GL Interface table
Each time you post these journals in the primary ledger, they are automatically propagated to
the subledger level secondary ledger, unless you defined journal conversion rules to exclude
these journal sources from being transferred to the secondary ledger.
By default, journals that use the following journal sources are not transferred to the subledger
level secondary ledger:
• Move/Merge
• Move/Merge Reversal
• Revaluation
• Subledger sources that use Subledger Accounting

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Chapter 5 - Page 45
Secondary Ledgers

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Secondary Ledgers
Journal Level Secondary Ledgers
c l
r a
The journal level secondary ledger is an additional
onal accounting g representation of the primary

General Ledger Posting Program only.O ly


ledger journal entries and balances. This type
ype of secondary ledger is maintained using the
y ledge

l & On
he primary ledger,
Every time you post a journal in the ledge
le ger, the same jour
journal is automatically

a e
replicated and maintained in the secondary lededger, depending on the journal conversion rules
ledger,
ry ledger.
specified for the secondary

r n s
By default, journals that use the following
follo
lowing journal
journal so
sources are not transferred to the journal
level secondary ledger:

n t e U
e
/Merge
Merge
• Move/Merge
I
Reve
• Move/Merge Reversal

c l
• Revaluation

r a
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Chapter 5 - Page 46
Secondary Ledgers

m y

A c
Secondary Ledgers
Balance Level Secondary Ledgers
c l e
The balance level secondary ledger only maintains tains
ains the primary y ledger balances in another
accounting representation. To maintain balances
lances in this type
ype secondary ledger, use General
pe off se

& On l
dger
y
Ledger Consolidation to transfer the primary
rimary ledger balances
ger uses a differe
If the balance level secondary ledger erent
alances to this
bal
rent currency
different currency fro
thi secondary ledger.
from the primary ledger, use
General Ledger Consolidation
l
a e
n to transfer bala
lances
nces from the pr
balances pprimary ledger's balance level

uses the same currency


r n s
cy as the secondary
seconda
second
sec
econdary ledger. This balance level reporting currency
reporting currency to the balance level secondary
dary ledger and represents
re the translated balances of the
primary ledger.

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Chapter 5 - Page 47
Secondary Ledgers

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Secondary Ledgers
Adjustments Only Secondary Ledger
c l
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The adjustments only secondary ledger is an incomplete accounting representation that only
ncomplete accoun

O ly
holds adjustments, manual adjustments, or automated adjustments
Accounting. Create adjustments as follows:
lows:
adjus
ad ustment created by Subledger

• To create manual adjustments,


l & On
ts, enter manuall journal
journal entries ddirectly in the secondary

a e
ledger.
• To create automated
r n
d adjustments using
usi
hod to both the primary
accounting method
s pr
sing Subledger A
se
seco
Accounting, assign a subledger
and secondary ledger and define Subledger

t e U
Accountingg rules that transfe

n
transfer only the suble
subledger accounting adjustment to this

I
ments only second
adjustments ger.
secondary ledger.
ments only secondary
Adjustments secon ledgers are useful if you do not need a complete ledger to perform

l e
anagement
nagement or statu
management

c
statutory reporting. You can perform all of your daily transactions in the
a then book adjustments, such as management or statutory adjustments, in the
primary ledger and

r a
adjustments only secondary ledger.

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Chapter 5 - Page 48
Using a secondary ledger as an adjustments ledger is not sufficient for companies that operate
in countries that require companies to have two complete ledgers, one for statutory reporting
and another for corporate accounting.
By itself, this adjustments only secondary ledger does not represent the complete accounting
picture; it only holds the adjustments for the transactions contained in its associated primary
ledger. Use a ledger set to combine the adjustments only secondary ledger with the primary
ledger to obtain a complete secondary accounting representation that includes both the
transactional data and the adjustments. Then report on the ledger set using General Ledger's
Financial Statement Generator (FSG), which automatically summarizes data across ledgers in a
ledger set.
Notes:
• Ledger Sets enable you to group multiple ledgers together (that share the same chart of
accounts and accounting calendar/period type combination) to obtain processing
efficiencies, such as opening and closing periods and reporting across multiple ledgers
simultaneously.
• Adjustments only secondary ledgers must share the same chart of accounts, accounting
calendar/period type combination, and currency as the associated primary ledger.

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Chapter 5 - Page 49
Using Secondary Ledgers for Consolidated Reporting

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Using Secondary Ledgers for Consolidated Reporting
Use secondary ledgers for consolidated reporting to
rting
o prevent the need to perform balance

r a
transfer consolidations, and to obtain a cross-company
assume the two accounting setups described
mpany view of your
ompany
d in the following
y enterprise. For example,
graphic and table are defined for
ng gra
the company's legal entities.
O ly
l & On
mary ledger for corporate
The France legal entity uses a primary
purpos
co accoun
oses. Both ledger
secondary ledger for statutory reporting purposes.
accounting purposes and a
ledgers use different charts of accounts
and accounting calendars.
n a e
ses its own chart
The US subsidiary uses
keeping
er s
eeping ledger, th
its main record-keeping
t U
rtt of
o accounts and currency to account for its transactions in
the primary ledge
ledger.

I n
For ease of consolidation, the US subsidiary
ledger. The secondary led
bsidiary can assign a secondary ledger to its primary
ledger should use the same chart of accounts, accounting calendar, and

c l e
rency as the paren
currency
subsid
parent entity, France. Then, by using a ledger set to group the secondary ledger
of the US subsidiary with the primary ledger of the parent entity, consolidated results can be

r a
obtained by simply running an FSG report using the ledger set. This prevents the need to
perform balance transfer consolidations every period.

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Chapter 5 - Page 50
The following graphic and table describe an example of the ledger configuration when a
secondary ledger is added to the US subsidiary. The Consolidation Ledger Set is comprised of
the primary Ledger for France and the secondary ledger for the US.

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Chapter 5 - Page 51
Using Secondary Ledgers for Consolidated Reporting

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Using Secondary Ledgers for Consolidated Reporting
The France legal entity uses a primary ledger for corporate
rting
orporate accounting purposes and a
rporate accountin

r a
secondary ledger for statutory reporting purposes.
and accounting calendars.
es. Both ledgers uuse different charts of accounts

O ly
The US subsidiary uses its own chart of accounts and currency
cu to aaccount for its transactions in

l & On
its main record-keeping ledger, thee primary ledger. r.

a e
For ease of consolidation, thee US subsidiary canca assign a secondary
sec ledger to its primary

r n
dger should use the
ledger. The secondary ledger

s
ntt entity, France.
currency as the parent
th same
e.. Then,
T
same chart oof accounts, accounting calendar, and
by using a ledger set to group the secondary ledger

n t e U
iary with the primary
of the US subsidiary primary ledger off the
obtained by simply running an FSG report usingus
th parent entity, consolidated results can be
the ledger set. This prevents the need to
I
perform balance transfer cconsolidationss eevery period.

e
c l
Thee graphic above is an example of the ledger configuration when a secondary ledger is added
to the US subsid
subsidiary. The Consolidation Ledger Set is comprised of the primary Ledger for

r a th secondary ledger for the US.


France and the

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Chapter 5 - Page 52
Note: If the parent entity, France, needs to enter consolidation adjustments, such as
intercompany eliminations, they can enter those adjustments in their primary ledger using a
balancing segment value that is reserved for manual adjustments.

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Chapter 5 - Page 53
Using Ledgers for Consolidation

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Using Ledgers for Consolidation

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A ledger in an accounting setup with no entity assigned gned can be usedd as the parent consolidation

r a
ledger when performing fairly simple consolidations
accounting setups. This allows users to keep
ati
tions
p consolidation
multiple legal entities in different
ons across mult
aadjustments completely separate
onsolidation adjus
O ly
from the ledgers that are used to maintain ain the day-to-day
ay transactions
transactio for multiple legal
entities.

l & On
For example, assume the legall entities and le ledg
dgers in three dif
ledgers diff
different accounting setups as
described in the following
a e
g table above.
n
edger
t e r
dger for stat
secondary ledger
U s
• The France legall entity uses a prim rimary ledger for corporate accounting purposes and a
primary
tutory reporting purp
statutory purposes.
• The US
I n
S subsidiary uses its own chart of accounts and currency to account for its
nsactions in its ppr
transactions primary ledger.

cl e
• The U.K. OperOperations uses the corporate chart of accounts and calendar to account for its
transaction but it uses its own local currency.
transactions,

r a
Instead of assigning secondary ledgers to the US and U.K. operations to perform consolidation,

O ba
par entity can define another accounting setup with no legal entity assigned to perform
the parent
balance transfer consolidations from all three legal entities.

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Chapter 5 - Page 54
The primary ledger should share the same ledger attributes as the primary ledger of the parent
entity, such as the same chart of accounts, accounting calendar, and currency.

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Chapter 5 - Page 55
Completing Accounting Setup

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Completing Accounting Setup

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If you assigned secondary ledgers when you created setup structure, complete
d an accounting se

r a
the secondary ledger steps described in the tablee below in the Ac
Accounting Options page.

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Chapter 5 - Page 56
Completing Accounting Setup

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Completing Accounting Setup

c l
If you assigned secondary ledgers when you created setup structure, complete
d an accounting se

r a
the secondary ledger steps described in the tablee above in the Ac
Accounting Options page.

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Chapter 5 - Page 57
Adding, Deleting, Disabling Secondary Ledgers

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Adding Secondary Ledgers
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Adding, Deleting, Disabling Secondary Ledgers

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Add secondary ledgers to accounting setups at any time in the A Accounting Options page.

O ly
If you add a balance level secondary ledger
ledger, a balance level reporting currency
ency is generateded
different
fferent ccurrency from the primary
er that uses a diff
ifferent
primary ledger unless one
d for the prim
prima

l & On
already exists. This balance level reporting curren
currenc
ency
ncy maintains the primary ledger's translated
currency

a e
presentation for the
balances and is the source representation th secondary led ledger. In other words, when using
sfer
GL Consolidation to transfer

r n
fer ba
balances

s
n,, the balance
source representation,
lances to
balance leve
o the
th secondary le
vel reporting
level reporting curr
ledger, transfer the balances from the
currency.
Prerequisite

n t e U
dd
To add
e I
The ledger options for the pr
d secondary ledgers:
led
dger m
primary ledger must be completely defined.

cl Acc
1. Open the Accounting Options page.

r a prim
primary
A Secondary Ledger. This button will only appear after the ledger options for the
2. Select Add
ledger have a complete status.

O 3 Enter all relevant fields.


3.

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Chapter 5 - Page 58
The table above describes the selected fields in the Add Secondary Ledger page.
Note: After adding a secondary ledger, complete the Ledger Options step and the Primary to
Secondary Ledger Mapping step to enable the secondary ledger for data entry.
Deleting Secondary Ledgers
You can only delete secondary ledgers before the accounting setup is complete. After the
accounting setup is complete, you can disable the conversion of secondary ledgers. This
prevents any journals that are entered in the primary ledger or source representation from being
transferred to the secondary ledger.
Deleting a secondary ledger removes the ledger and all of its setup steps.
To delete secondary ledgers:
1. Navigate to the Accounting Options page.
2. Find the secondary ledger to delete and click the Remove Secondary Ledger icon.
Disabling the Conversion of Secondary Ledgers
Once you disable the conversion of secondary ledgers, it immediately prevents the propagation
of journals from the primary ledger to the secondary ledger.
The disabled secondary ledger is still available for historical reporting and manual journal
entries.
Notes:
• Balance level secondary ledgers cannot be disabled. To stop transferring balances from m the
source representation (primary ledger or balance level reporting currency) to the balances
level secondary ledger, stop running consolidations.
alances

m y
• Adjustments only secondary ledgers cannot be disabled because journals are not
automatically transferred to this secondary ledger.
d e
To disable the conversion of secondary ledgers:
ca
1. Open the Accounting Options page.

e onversion icon fo
2. In the Secondary Ledgers region, select the Disable Conversion A
for the secondary
ledger to be disabled.
c l
is changed to Disabled.
r a
Note: Once the conversion of a secondary ledger is disabled, the st status of the secondary ledger

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Chapter 5 - Page 59
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Chapter 5 - Page 60
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Chapter 5 - Page 61
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Chapter 5 - Page 62
Summary Accounts

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Chapter 6

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Copyright © Oracle Corporation, 2007. All rights reserved.

Summary Accounts
Chapter 6 - Page 1
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Summary Accounts
Chapter 6 - Page 2
Summary Accounts

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Summary Accounts
Chapter 6 - Page 3
Objectives

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Summary Accounts
Chapter 6 - Page 4
Overview

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Chapter 6 - Page 5
Overview

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Summary Accounts
Chapter 6 - Page 6
Defining Summary Accounts

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Defining Summary Accounts

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The first step in defining your summary accounts is to determine you
your summary account needs.

r a
Summary accounts provide you with significantt benefits when yyou produce summary reports
and perform allocations.
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Summary Accounts
Chapter 6 - Page 7
Summary Account Examples

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Summary Account Examples

c l
Here are some common dimensions and examples of ways you can ssummarize information
within each dimension:
r a
Company:
O ly
• A segment that indicates legal entities.
ntities.. You might
ntities ht summarize companies by major
& On
industry, such as Electronics Companies; byy regions within a country, such as Eastern
l
a e
Companies; or by country ryy group, su ch ass European Com
such Companies.
Cost Center:
r n s
t e
• A segment thatt indicates functional

U
Shipping, and so on. You might

n
tional areas of your
functio yo business, such as Accounting, Facilities,
m ht keep track of functional areas at a detailed level, but
ce summary repor
produce
I
nalysis and Facilities,
Analysis
e
Facili
oup co
reports that group cost centers such as Accounting, Planning &
into one division called Administration.
ccount:
count:
Account:
c l
r a segmen that indicates your "natural" account, such as Cash, Accounts Payable, or
segm
• A segment
Salar Expense. You will likely summarize your accounts by account type, namely your
Salary

O A
Assets, Liabilities, Equity, Revenues and Expenses. You might also summarize at a more
detailed level, with summary accounts like Current Assets or Long–Term Liabilities.
Copyright © Oracle Corporation, 2007. All rights reserved.

Summary Accounts
Chapter 6 - Page 8
Product:
• A segment that indicates products. You might want to summarize products into product
groups such as personal computer components, storage devices, and so on.
District:
• A segment that indicates geographical locations, such as Northern California, Central
Florida or Western New York. If you define segments that record data within smaller
geographical areas, such as districts, you can easily summarize districts into states, or even
into groups of states you can call regions.

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Chapter 6 - Page 9
Detail Versus Summary Accounts

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Detail Versus Summary Accounts
Summary Accounts:
c l
r a
• Updated when journals are posted to a corresponding
rrespondi
responding detail account
ng detai
• Enable online summary inquiries
O ly
& On
• Speed concurrent processing
Detail Accounts:
l
a e
• Allow direct posting of business transactions
business transa journals
sactions and journ

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Summary Accounts
Chapter 6 - Page 10
Summary Accounts Versus Parent Values

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Summary Accounts
Chapter 6 - Page 11
Parent Values and Rollup Groups

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Parent Values and Rollup Groups

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After determining your needs and organizing your summary
ummary account structure, define your

r a
parent values and your rollup groups.

O ly
Note: You can use the Account Hierarchy Manager
Applications Desktop Integrator is installed,
talled,
talle
Account Hierarchy Editor, if
Manager or thee Accou
A
and edit your account hierarchies
d, to create an

l & On
ount
unt Hierarchy Manager
graphically. You can use the Account
nt values, as well
define parent and child segment
M or the Account
ell as rollup group
groups.
A Hierarchy Editor to

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Summary Accounts
Chapter 6 - Page 12
Rollup Groups

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Rollup Groups
About Rollup Groups:
c l
r a
• A rollup group is a collection of parent segment
gment values for a given segment

O ly
• A value cannot belong to a rollup group
oup unless it is a parent
p vvalue that has child values

& On
• Parent values and child values belong
elong to the same
sam
me value set, w which is attached to a key
flexfield segment
l
a e
r n s
n t e U
e I
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r a
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Summary Accounts
Chapter 6 - Page 13
Summary Account Templates

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Summary Account Templates

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• Oracle General Ledger uses summary templates summary accounts.
ess to create summ

r a
• Oracle General Ledger uses the templates in combination w with parent segment value

O ly
definitions to create summary accounts.
• You specify when you want Oracle
ts.
cle General Ledger
Ledgdger to begin maintaining
m your summary
account balances.
l & On
mary template, Oracle
• When you delete a summary
a e O le General L
om that templatee and their associated
accounts created from
n associ
Ledger deletes all summary
balances.

t er U s
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Summary Accounts
Chapter 6 - Page 14
Template Values

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Summary Accounts
Chapter 6 - Page 15
Defining Summary Accounts

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Defining Summary Accounts
Plan Your Summary Account Templates
c l
r a
• Set up templates to define and maintain summary accounts. You can enhance the speed of
mmary accounts

O ly
your summarizations by controlling the
template. The number of summary
he number
num summary
mmary accounts created by your
mber of sum
ummary
y accounts yourr template
t creates depends on the template
cre
segment values.

l & On
a e
- Use the formula above ve to determinee tthee number of ssummary accounts any given

n
eate.
template will create.

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Summary Accounts
Chapter 6 - Page 16
Summary Account Creation Example

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Summary Account Creation Example

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How to Define a New Summary Account Template ate

r
1. Open the Summary Accounts window.
a
O ly
2. Enter a Name for the summary account unt template.

& On
3. Enter the Template.

encumbrance and budget l


4. Enter the Earliest Period for

a e
get summary account
acco
want
orr which you wan
count balances. G
Ledger to maintain your actual,
antt General Ledg
General Ledger maintains summary
account balances for
r n
or this accounting

s
ng period and ffor subsequent periods.

mary
t e
ng budgetary con
5. If you are using
ary template.
the summary
n U
ntrol for your led
control le
ledger, set the budgetary control options for

e I
6. Savee your work. General
accounts, and disp
Gene Ledger submits
sub a concurrent request to add the summary
displays the Status of your summary template.

c l
Current The summary accounts are active.
- Current:

r a Ad
- Adding: The concurrent request to create summary accounts is pending or running.
- Deleting: The concurrent request to delete summary accounts is pending or running.
O
Copyright © Oracle Corporation, 2007. All rights reserved.

Summary Accounts
Chapter 6 - Page 17
Maintain Summary Accounts Overview

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Maintain Summary Accounts Overview

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Maintenance on Summary Accounts is required when en performing the following changes to
your parent values:
r a
O ly
• Addition of child ranges assigned to a parent value
• Removal of child ranges assignedd to a parent valu
value
lue

l & On
ment value to a rollup
• Assigning a new parent segment ro group

n a e
up assignment from
• Removing a rollup group fro a parent seg
segment value

t e r U s
• Changing rollup group assignmentnt for a parent seg
segment value

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Summary Accounts
Chapter 6 - Page 18
Maintaining Summary Templates

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Maintaining Summary Templates

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• If you make changes to your flexfield hierarchies es that affect summary accounts, run the
affect sum

r a
Incremental Add/Delete Summary Templates
balances. This program lets you make change
tess program to up
te
changess to accou
account
update your summary account
hierarchies without having to
ount hi
O ly
drop and recreate the summary template.
mplate.

l & On
rchies
chies and rollup
• Changes to the account hierarchies
ummaryy Templa
ummar
Incremental Add/Delete Summary
roll p ggroup assignme
plates
assignments are ignored until the
lates Program is run.
Templates
ntal
• Choose the Incremental
n a e
tal Add/Delete Summ
Summary
S ary Tem
Temp
Templates from the Submit Request
window.

t e r U
Note: You also need to run the prs gram, Mainta
program, Main
Maintain Summary Templates to update summary

I n
accounts for non–flexfield hi
mental Add/Delete
Incremental
hierarchy related changes.
Add/Dele Summary Template Program Performance

c l e
• The amount of time it takes the Incremental Add/Delete Summary Template Program to
d
complete depends on several factors, such as:

r a D
- Degree of complexity of the summary account template.

O - Number of parents assigned to each affected rollup group.

Copyright © Oracle Corporation, 2007. All rights reserved.

Summary Accounts
Chapter 6 - Page 19
- Number of detail child values that are assigned to the affected parent values.
- Number of periods for which summary account balances have to be maintained.
- Maintenance of average daily balances for summary accounts.
- Extent of changes made to the account hierarchies.
Maintain Summary Templates Program
• Use this program to ensure that summary account balances reflect new detail accounts that
may have been added to that summary account. The posting process automatically
maintains summary accounts but running this program is beneficial if many new detail
account combinations have been created since the last posting. Run this program when
you make changes to detail accounts to improve the performance of the posting program.

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Summary Accounts
Chapter 6 - Page 20
Setting Budgetary Control

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Setting Budgetary Control

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Setting the Summary Account Budgetary Control ol Options

r a
• If budgetary control is enabled for your ledger,
dger,
dge budgetary
r, enter budge
g control options for your
summary account template.
O ly
• Choose the Incremental Add/Delete ete Summary
Summary Templates
Tem from the Submit Request
window.
l & On
Note: You also need to run the
accounts for non–flexfield
n
ld a e
he program, Mai
d hierarchy
hierarchy relat
lated
aintain
tain Summ
Maintain Summary Templates to update summary
ated changes.
related
To set the budgetary

t e r
1. Open the Summary Accou
U s
ryy control options
ns for a summary account template:
Accounts window.

I n
2. Enterr the summary ac ate Name.
account template

c l e
3. Enter the summa
summary account Template.
4. Enter the Ea
Earliest Period for which you want General Ledger to maintain your actual,

r a encum
encumb
encumbrance
acc
account
and budget summary account balances. General Ledger maintains summary
balances for this accounting period and for subsequent periods.

O
Copyright © Oracle Corporation, 2007. All rights reserved.

Summary Accounts
Chapter 6 - Page 21
5. Enter the Funds Check Level. If you choose the Advisory or Absolute funds check level,
you must enter values in the remaining budgetary control fields. You cannot enter values
in these fields if you choose the None funds check level.
6. Assign a Debit or Credit balance type to your summary template. General Ledger uses the
balance type to determine if funds are available, based on the funds available equation:
Funds Available = Budget – Actual – Encumbrance
- For summary accounts with a Debit balance, General Ledger considers funds
available to be sufficient if the funds available equation yields a positive result.
- For summary accounts with a Credit balance, General Ledger considers funds
available to be sufficient if the funds available equation yields a negative result.
Note: Assigning a balance type of debit or credit to a summary account does not restrict the
balance type of the detail accounts that roll up into a summary account.
7. Enter the Amount Type, or cumulative balance used in the funds checking interval.
8. Enter the Boundary, or the endpoint of the funds checking interval. Combined with the
amount type you specify, boundary determines the time interval over which to perform
summary level budgetary control.
9. Enter the Funding Budget against which you want General Ledger to check or reserve
funds. You can only choose a funding budget that requires journal entries. General Ledger
requires you to create budget journal entries for your funding budget to enforce budgetary
control.
Note: If you want to change the funds check level from None to Advisory or Absolute,
must delete the summary template and then recreate it with the appropriate funds check
e, you

m
heck level.
y
General Ledger does not perform summary level budgetary control retroactively
summary accounts it creates.
ely for the

d e
To set the budgetary control options for a summary account template: e::
ca
1. Open the Summary Accounts window.

e
2. Enter the summary account template Name. A
c
3. Enter the summary account Template.
l
r a
4. Enter the Earliest Period for which you want General Ledger to maintain your actual,
encumbrance and budget summary account ount
unt balances. Gene
Gen
General Ledger maintains summary

O ly
account balances for this accounting g period and forr subseque
ssubsequent periods.

l & On
5. Enter the Funds Check Level. If you choose the
hee remaining budg
you must enter values in the
the Advisory or Absolute
udgetary
dgetary control fi
budgetary
A funds check level,
fields. You cannot enter values

n a e
hoose the None funds
in these fields if you choose fu check leve
level.

e r s
balance type to determine if fu
t U
ty to your sum
6. Assign a Debit or Credit balance type
unds are availab
funds
summary template. General Ledger uses the
available, based on the funds available equation:

n
Funds Available = Budget – Actual – Encumbrance
unds Availab

e I
- For summary accounts
ac with a DDebit balance, General Ledger considers funds

c l
available to be sufficient if the funds available equation yields a positive result.
- For summary
sum accounts with a Credit balance, General Ledger considers funds

r a A
ava
available to be sufficient if the funds available equation yields a negative result.
Note: Assigning a balance type of debit or credit to a summary account does not restrict the
O balance
bala type of the detail accounts that roll up into a summary account.

Copyright © Oracle Corporation, 2007. All rights reserved.

Summary Accounts
Chapter 6 - Page 22
7. Enter the Amount Type, or cumulative balance used in the funds checking interval.
8. Enter the Boundary, or the endpoint of the funds checking interval. Combined with the
amount type you specify, boundary determines the time interval over which to perform
summary level budgetary control.
9. Enter the Funding Budget against which you want General Ledger to check or reserve
funds. You can only choose a funding budget that requires journal entries. General Ledger
requires you to create budget journal entries for your funding budget to enforce budgetary
control.
Note: If you want to change the funds check level from None to Advisory or Absolute, you
must delete the summary template and then recreate it with the appropriate funds check level.
General Ledger does not perform summary level budgetary control retroactively for the
summary accounts it creates.

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Summary Accounts
Chapter 6 - Page 23
Incremental Add/Delete Summary Templates Program

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Summary Accounts
Chapter 6 - Page 24
Incremental Add/Delete Summary Templates Program

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Incremental Add/Delete Summary Templates Program gram
Factors that affect performance of Incremental Summarization:
marization:

r a
• Degree of complexity of the summary account count
ount template

O ly
• Number of parents assigned to each affected rollup groupgr

& On
• Number of detail child values that at are assigned to the affected parent values

• Maintenance of average l
• Number of periods for which

a e
ch summary account
ge daily balances
acco have to be maintained
count balances ha
es for summary aaccounts

rn s
• Extent of changess made to the accccount
count hierarch
account hierarchie
hierarchies

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Copyright © Oracle Corporation, 2007. All rights reserved.

Summary Accounts
Chapter 6 - Page 25
Planning Summary Accounts

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Planning Summary Accounts
How to Plan Your Summary Accounts
c l
r a
• Determine your summary account needs.

O ly
• Plan the summary account structure to meet your need
needs.
eds.

& On
• Plan the parent segment values and rollup
rollup groups
ps you need for your summary accounts.
• Plan your summary account
l
nt templates to generate

a e
ge multiple summary accounts.

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Summary Accounts
Chapter 6 - Page 26
Determine Summary Account Needs

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Determine Summary Account Needs

c l
Consider the summary information you need for reports. ports. Although yyou can easily define

r a
financial statements that sum a number of accounts
summary accounts for faster access to summarized
unts togetherr for a given row, you can use
marized balances.
balances
es.
O ly
• For example, many of the reports for upper manag management
manage
agement in yoyour company may include

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summary level amounts. You may have summ
balance sheets, a summaryy overhead expense
expen
mary income or rrevenue statements and
summary
ensee analysis and many other summary level

n a e
gement reporting
reports in your management ng
g package.

• For example, le,


t er U s
Identify the summaryy balances you need ne for online in
e, you may need "flash"
flash" inquiries
inquiries.
inquirie on the total of all cash balances for your
domestic
I
dging. You ma
hedging. n
ic organizations to t make daily decisions
may aalso want to review
de about investments or foreign currency
i the amount of working capital (current assets less

c l e liabilitie for each division or department on a weekly basis.


current liabilities)
Consider how you y want to use summary accounts in formulas and allocations. You can use

r a ac
summary accounts as factors when defining journal formulas and allocations.

O
Copyright © Oracle Corporation, 2007. All rights reserved.

Summary Accounts
Chapter 6 - Page 27
• Use summary accounts to reference summary balances in a recurring journal formula. For
example, to estimate a sales commission accrual based on the total of all product sales for
each division, you can use a summary account that totals all product sales in each division.
• Use summary accounts to reference summary budget balances in a budget formula. For
example, to base the budget for employee benefits in each company on the total of all
budgeted employee salaries, use summary accounts that total all employee salaries in each
company.
• Use summary accounts when entering budgets with budget rules. For example, you can
base your budget for the current year's Salary account on a percentage of the prior year's
total Overhead expense, a summary account.
• Use summary accounts to indicate the total amount you want to allocate when defining
your allocation formulas. Also, use summary accounts to help you calculate the allocation
ratios to use in your allocation formulas.

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Summary Accounts
Chapter 6 - Page 28
Plan Summary Account Structure

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Plan Summary Account Structure

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After determining your summary account needs, plan an your summary account structure

r a
according to how you want to summarize your accounting infor information.
inform

O ly
To determine your summary account structure
your accounting information depending ng
ture you will need
g on the structure
eed to choose
nee c ways to summarize
account and your
ure of your acc

l & On
rganizations
ganizations struc
informational needs. Generally, organizations st cture their accou
structure
ion, or a way off looking
represents a particular dimension, l
accounts such that each segment
at their oorganization.

n a e
• Common dimensionss and examples of o ways you can summarize information within each
dimension:
- Companyany
t e r U s
I n
ost Center
- Cost

e
- Account

c l
- Product

r a Dist
- District

O
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Summary Accounts
Chapter 6 - Page 29
Plan Summary Account Structure

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Plan Summary Account Structure

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For any organizational dimension you want to summarize, determine how many summarization
marize, determ

r
levels you want within that dimension.
a
O ly
• For example, you can summarize yourr natural accounts
acc ts into Assets and Liabilities, or you
can summarize at a more detailed level, such as Current
Cu Assets,
Asset Non–Current Assets, and

l & On
so on. You can also summarize ze products intoo product
wise, you can sum
product categories. Likewise,
pr
p oduct groups and
ummarize
a into larger groups called
mmarize districts into states and then into
summarize
regions.
n a e
example, you
t
mmarize at differ
• You can also summarize

e r U s
u may decide to group
erent
rent levels withi
different within an organizational dimension. For
group your East Coast offices together, your West Coast

mmary
nto another group
offices into
n group, and your Mid
mary groups can then be included
summary
I
Midwest offices into a third group. Each of these
ude in separate rollup groups namely Eastern States,

cl e
Western States anand Midwestern States. Then, you may decide to combine these three
groups into a higher level group, United States offices, and define a rollup group named

r a Co
Total Country Offices. If you have a single Canadian Office, you may decide to designate
it as a group in itself and assign it to the rollup group Total Country Offices as well. In this

O example, your United States offices group is at the same summary level as your Canadian

Copyright © Oracle Corporation, 2007. All rights reserved.

Summary Accounts
Chapter 6 - Page 30
office group, but you have one summary level below the United States level, while you
have no summary levels below your Canadian office.
• To clarify your plans, sketch your summarization levels on paper.
• The illustration above represents the summarization of districts into states and regions:
- Indicate the segment value and description of each of the parents in your sketch. Also
write the rollup group name or number and a description of the summary level next to
each of your summarization levels. You do not need to include every parent value in a
rollup group. You may define some parent values for
- reporting or formula definition purposes only.
- For example, you may decide to group all of your cost centers under the parent value
"All Cost Centers." However, if you do not plan to report on your cost centers at a
summary level, there is no need to assign these parent values to a rollup group.
- You can define multiple summary levels by assigning children that are parents
themselves (grand-parenting). For example, you can assign cost centers or
departments 110, 120 and 130 as the children for cost center or department 100 –
Western Region. General Ledger automatically maintains rollup relationships from
the summary level to the lowest detail level so that when you transfer a child value
from one parent to another, all the values assigned to the child are transferred as well.
However, you can only drill down balances from the summary level to the lowest
detail level, not to intermediate levels.

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Summary Accounts
Chapter 6 - Page 31
Plan Summary Account Structure

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Plan Summary Account Structure

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• After considering how you want to summarize within each of yo your organizational

r a
dimensions, think about how you want to co
organizational dimensions. For example,
combine
ombine your sum
le, if you summarize
summar
summary views across different
arize departments into divisions and
marize
O ly
districts into regions, you may wish h to reference and nd report on divisions by region.

l & On
• You can also combine a particular cular summary le
different summary level for another
another organi
level
vel for one orga
anizational
nizational dim
organizational dimen
organizational dimension with a
dimension. For example, you may wish
to reference and report
n a e
rt on departments
nts by region.
region. To decide upon the combinations of
summary views across

t e r s
cross your organizational
organ
anizational dimen
level sketchess side by side so tthat you
U
you can con
dim
dimensions, you can lay your summarization
consider your summarization levels

n
ually.
ally. The chart ab
conceptually. above shows how you might roll up your account segments into
al levels.
several

e I
l
sider whether you want to create these summary relationships with summary accounts, or
Consider

a c
with reporting hie
in
hierarchies. You can achieve the benefits of summary reporting with reporting
hierarchies instead of summary accounts. A significant benefit of using reporting hierarchies

O r
instead of summary accounts is easier reorganizations.
Use reporting hierarchies instead of summary accounts when:

Copyright © Oracle Corporation, 2007. All rights reserved.

Summary Accounts
Chapter 6 - Page 32
• You want to easily reorganize your summary views in the future.
• Your primary use for summarization is reporting. You cannot reference reporting
hierarchies in formulas, allocations or online.
Use summary accounts instead of reporting hierarchies when:
• Your summary relationships are more permanent.
• You want to use summary accounts in formulas and allocations, as well as reporting.
• You want online inquiry of these summary amounts.
• You want faster financial reporting of these summary amounts.
To define parents for each of your account segments, organize your account structure so you
can use ranges to easily define the children for your parent values.
For example, if you know that all of your administration cost centers are between 100 and 199,
you can define the Administration parent as the range of cost center values between 100 and
199.

n l y
e O
U s

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Summary Accounts
Chapter 6 - Page 33
Plan Summary Account Structure

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Plan Summary Account Structure

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Consider whether you want to create summary relationships
tionships summary accounts or
ionships with sum
reporting hierarchies.
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Summary Accounts
Chapter 6 - Page 34
Plan Values and Groups

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Plan Values and Groups

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Plan your parent segment values. When determining parents for each account
g the values of pa

r a
segment, consider the structure of values within n that segment. If your segment values are
logically organized and the child values for your parent aree all a in a contiguous range, a logical
O ly
value for the parent is the first or last value
alue in the range. example, if all of your Assets are
e. For exam
examp

l & On
between 1000 and 1999, an appropriate riate value for your
yo Total Assets parent is 1999. If you want
eserve the first orr last value in your
to use parent values like this, reserve yo ranges for a summary value.

n a e part
articularr structure,
If your segment values do not follow a particular structure and your segment allows alphabetic
characters, you can use
only distinguish your
t e r s
see alphabetic characters
char
aracters for
for paren
our parent valuess from your deta
U
de
parent values. The alphabetic characters not
detail values, but they can also provide some

n
orr the parent value.
description for value For example, you could group your United States companies,
companies

e I
ess 07, 12 and 18 into
in a parent with
wit a value of "US."

l
ne the parent segment
Define segm values, and enter meaningful segment value descriptions. For

a c rollu groups that summarize districts into states and regions you might use
example, for rollup
descriptions ffor your parent values such as "Washington State," and "Western Region."

O r
Choose a naming or numbering method for rollup groups that is similar for all segments to
estab
establish a more memorable and logical rollup group structure. This consistent rollup group

Copyright © Oracle Corporation, 2007. All rights reserved.

Summary Accounts
Chapter 6 - Page 35
structure helps you know the approximate level of detail the parents in rollup groups provide.
For example, where districts are your detail segment, states would be rollup group name States,
regions would be rollup group name Regions, and so on.

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Summary Accounts
Chapter 6 - Page 36
Plan Summary Account Templates

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Plan Summary Account Templates

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Set up templates to define and maintain summary accounts.
ccounts. You can enhance the speed of your

r a
summarizations by controlling the number of summary
mmary accounts created by your template. The
number of summary accounts your templatee creates ds on the template segment values.
creates depends
O ly
• Use the formula above to determinene the number
nummber of summary aaccounts any given template
will create.

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Summary Accounts
Chapter 6 - Page 37
Summary

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Summary Accounts
Chapter 6 - Page 38